Emerging Markets

According to the Nigerian Debt Management Office, Nigeria raised $2.25 billion in a bond sale on Wednesday, 5 November 2025. The sale reflected what Reuters referred to as a ‘sharp improvement in global borrowing conditions’ which has lured so-called highly indebted sovereigns back to international capital markets. Notably, Congo Republic, Angola and Kenya have also sold their high-yield debt to eager investors. Others such as Senegal and Cote d’Ivoire, which in a bid to assume a more conservative stance have resorted to the regional markets instead, such as the West African Monetary Union (WAMU). Nigeria's dual-tranche listing for ten-year and twenty-year bonds was oversubscribed by as much as 12 times. The long 10-year (maturing 2036) and long 20-year (maturing 2046) notes were priced at 8.625% and 9.125% respectively.

In conclusion, Côte d'Ivoire's recent Samurai bond issuance exemplifies a crucial and growing trend among African governments: the strategic diversification of financing sources to mitigate risks associated with dollar volatility. While this move away from single currency dependence is prudent, it simultaneously underscores an increasing reliance on capital markets for funding. Despite Côte d'Ivoire's commendable fiscal performance, including its successful CFA franc-denominated issuance and a modest Samurai bond coupon, continuous and rigorous monitoring of its sovereign debt fundamentals remains paramount to ensure sustained fiscal health and responsible financing. Further, this trend must be carefully monitored for its potential to continue piling on unsustainable debt for those countries that have embarked on diversifying their creditor base.

In response to these concerns, Ndegwa is demanding comprehensive accountability and transparency from the government. He is requesting detailed information on all secured levies, the specifics of the loans, the identity of the lenders, and how the funds have been utilized. By raising these issues, Ndegwa is not only questioning the legality of the government’s financial maneuvers but also highlighting a broader debate over whether Kenya's current economic state justifies financially risky strategies that could burden future generations. The scenario underscores the critical need for transparent and responsible financial management in the face of the country’s debt management challenges. Hence, by using private entities and failing to fully disclose the terms of these deals, the government appears to have bypassed key constitutional principles of public finance, accountability, and public participation. This approach burdens future generations with long-term debt and undermines effective oversight, raising serious questions about the integrity of the country's debt management practices.