Citigroup¡¯s Daniel Lebetkin has helped steer almost all of the $18 billion in international bond sales from Africa this year. From Nigeria to Kenya, he¡¯s watched investors snap up debt at a blistering pace. One thing hasn¡¯t changed: African nations pay more to borrow.
¡°It¡¯s certainly unfortunate,¡± says Lebetkin. ¡°There¡¯s just a structural difference in yields.¡±
It¡¯s a view shared widely among policymakers and investors, who point out that even as global interest rates fall and Africa¡¯s markets mature, the region¡¯s borrowing costs are still the highest in the world. Some argue it¡¯s justified, given the track record of default in places like Ghana and Zambia, and the region¡¯s turbulent politics and corruption scandals. Plus, African countries tend to be small and relatively new borrowers.
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