Debt is a significant source of funding for the economic growth and development of African countries. However, debt management represents a major challenge for countries, especially in these times of economic crisis. International financial markets have opened a window for African governments to diversify their funding sources. Between 2007 and 2020, 21 African countries took the opportunity to access international debt markets, by issuing Eurobonds. Because of poor credit ratings and perceptions of high risk, African bonds are classified as high yields. The high yields demanded by investors results in high interest cost to governments and high exchange rate risks. The IMF has identified 17 African countries with outstanding Eurobonds as near or under debt distress. The continued borrowing from financial markets has led to high debt accumulation.
