The country is recording a downward trend in its Year-To-Date Index (listed bonds) according to the September 2022 Africa Markets Revealed Report published by the Standard Chartered Bank.
The report indicated that this was as a result of the country’s inability to issue Eurobonds and the lack of access to the international capital market due to the global economic challenges and internal issues.
According to the report, the country’s Year-To-Date Index is down by 34.6 per cent. It is followed by Morocco (-20.8%) and Rwanda (-20.2 %), while the biggest gainer is the Republic of Congo, whose Year-To-Date index is up 9%.
The report also said while oil and gas prices are starting to fall, countries such as Nigeria and Angola have performed better than counterparts in Africa.
Angola now is the largest producer of oil in Africa, with average daily output in August of 1.17 million per barrel, exceeding Nigeria with an average daily output of 1.13 million per barrel.
“Most African countries can no longer issue new Eurobonds because of elevated yields due to global risk-off sentiment. Indeed, yields rose significantly in quarter 2, 2022 and quarter 3, 2022. In the last month, even though yields have decreased, they remain elevated,” the report stated.
Earlier in the year, Angola, Nigeria and South Africa issued new Eurobonds.
Kenya and Nigeria were set to issue again but then shelfed issuance due to global conditions. Kenya had previously issued bonds around a yield of 6 per cent-8 per cent; now, Kenya Eurobond yields are trading around 11.7 per cent.
“We don’t foresee yields returning to previous levels by December [2022]. Hence, new Eurobond issuance seems likely only by mid-2023,” it added.