As of November 25, 2015, the total of the African countries have issued sovereign bonds of $1 million, and then did not issue a new round of European bonds, the scale of financing than in 2014 ($1 billion) may fall 46%.
Preferential conditions for the government of Cameroon in the market has been difficult, even given 9.75% of record high interest rates, 10 years repayment period, etc., the 2015 through the issuance of new bonds only successful fund-raising $738 million, with 15 million funding needs large gaps still exist. Prior to this, oil giant head and Africa's third largest economy body - Angola, has repeatedly postponed delivery will interest rates on sovereign debt rose to 9.5%.
According to expert analysis, the main reason is that from the Sahara to South Regional Economic and national governance policies uncertain, especially international raw material prices and other effects, international investors investment conservative sentiment in the region continues unabated. In addition, expand trade and budget deficits currency lower pressure increased and the dollar continued higher factors influence also nots allow to ignore.
For years on the Federal Reserve to raise interest rates for pre sentenced, the international investors in developing countries especially African countries capital market has been holding a wait and see attitude even stop present in the market the potential risk of.2015 in December 16 U.S. Fed announced the launch of ten years to raise interest rates for the first time, the further deterioration of the conditions of issue of African sovereign bonds, the financing difficulty will increase.
In spite of this, still there is no lack of success to squeeze into the international bond market in the country, according to Bloomberg News Agency reported, Congo, the Democratic Republic of prime minister Augustin Matata Ponyo Mapun pointed out that the commitment of the Democratic Republic of the Congo issued nearly $1 billion euro bonds to support the project development.
The African market bond swap is booming, as of the end of 2015, Africa 25 financial bond market transactions amounted to $13 billion, in addition to the African Development Bank, African Stock Exchanges Association were also active in the in the local stock market.
But the market is still full of challenges and difficulties, especially for frequent adjustment, African public currency index deletion, withdraw from the part of the economy, regional economic integration is weak, particularly the lack of a unified African integration arrangements. In addition, due to market power mainly including a secondary market in South Africa and the Maghreb region, but mid small bond interest rates sometimes high is one of the difficult problems in the sustainable development of the market.
