By Seth Emmanuel
The World Bank and the International Monetary Fund, (IMF) project the Sub-Saharan region (SSA)’s economy to expand by 3.1% and 3.0%, respectively, in 2021, up from the 3.3% contraction recorded in 2020.
The rebound projections come on the back of the increased rollout of vaccines in the region which has resulted to most countries re-opening their economies.
The region has also seen recoveries in key sectors such as global trade, tourism and commodity driven sectors;
The select currencies recorded mixed performance against the US Dollar, with the Zambian Kwacha being the largest gainer in 2021, gaining by 21.0%, while the Mauritius Rupee was the largest decliner, depreciating by 9.3%.
In 2021, Africa’s appetite for foreign-denominated debt has continued to increase, with USD 11.8 bn worth of Eurobonds issued by African sovereigns in 2021.
The latest issuer in 2021 was Nigeria, who raised a total of USD 4.0 bn in September 2021, after receiving bids worth USD 12.2 bn, translating to a subscription rate of 3.1x. The oversubscription is mainly driven by the yield hungry investors and also the positive outlook of Nigeria’s economic recovery.
Other countries that issued Eurobonds include Kenya which raised USD 1.0 bn in June 2021, in an issue that was 5.0x oversubscribed. Similarly, Ghana raised USD 3.0 bn from a zero-coupon Eurobond issue that was 2.0x oversubscribed.
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