AFRICAN countries are increasingly issuing bonds on international markets using the window of opportunity created by historically low yields before the US Federal Reserve starts to raise interest rates next year.By keeping benchmark interest rates at historical lows, quantitative easing (QE) in the developed world has helped to stimulate a flood of international bond issuances by African countries. Last year, sub-Saharan African countries raised more than $5bn by issuing eurobonds at low cost. Ghana, for instance, issued $750m at an 8% yield at a time when yields on its domestic bonds reached 20%.As the Fed continues to taper off its QE programme and interest rates in advanced economies begin to rise, the cost of borrowing for African countries is expected to climb in tandem.But for now, yields on dollar debt in Africa remain low by historical standards and the "African bond rush" appears set to continue, says Capital Economics African economist Shilan Shah.South Africa has taken ad...
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