the GoJ issued a US$2 billion Eurobond that enabled it to retire US$2.9 billion of PetroCaribe debt.

“Between 2010 and 2015 at least a dozen other sub-Saharan African countries, including Côte d’Ivoire, Senegal, Angola, Nigeria, Tanzania, Namibia, Rwanda, Kenya, Ethiopia and Zambia issued sovereign bonds. They raised commercial debt in excess of $19.5 billion.

Many of these Eurobonds will mature between 2021 and 2025. It will require these sub-Saharan African countries to repay an average of just under $4 billion annually in that period. But they are already currently bleeding a rising total of just over $1.5 billion in annual coupon payments on these Eurobonds. This represents a total of an additional $15 billion across the term of the Eurobonds. The total accumulated bonds are in excess of $24 billion. The principle amount of this is $35 billion.

The $750 million Ghana bond, with a ten-year maturity, was issued in October 2007 and was four times oversubscribed. The principle repayment, which kicks in in 2017, will signal the direction of the continent’s economic dynamics in the years to follow. The writing is already on the wall. Ghana has already buckled, requiring an International Monetary Fund (IMF) financial restructuring package.”


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