African countries are bad at issuing bonds, so debt costs more: what needs to change

NSE Market watch board during ringing of the bell ceremony at Nairobi Securities Exchange, on September 4, 2019. [File, Standard]

Over the past two decades, African countries have increasingly turned to international capital markets to meet their development financing needs.

Fo example, Kenya and Benin raised a combined $2.5 billion through bond issuances during the first half of 2025. Proceeds were used to repay maturing bonds. This means new bonds, with unfavourable terms, are being issued to pay previous lenders.