African governments are expected to raise $155 billion in commercial borrowing this year, roughly 11% higher than last year, driven in large part by persistent fiscal pressures, S&P Global Ratings said.
Egypt, Morocco, and South Africa are set to remain Africa’s largest issuers, though South Africa — the continent’s biggest economy — is forecast to record the steepest decline in issuance as belt tightening and concessional funding ease financing needs.
S&P has also flagged risks from the war in the Middle East, warning that disruption to shipping lanes and volatility in oil prices could weigh on countries’ fiscal position and stoke inflation. In its October regional outlook, the IMF identified 20 sub-Saharan African countries as being in debt distress or at high risk.