This chapter analyses the functioning of corporate debt markets – bonds, syndicated loans and private credit – across Africa. Using original data, it examines the development of these markets over the past two decades and puts these trends in a global context. Based on this analysis, it highlights four areas for policy reform to support further market development, drawing from a review of existing initiatives and relevant international experiences.
Africa Capital Markets Report 2025
Abstract
African corporate debt markets are highly limited in size. Even relative to its already modest share of the global economy, Africa is underrepresented in the use of corporate debt instruments both at the global level and among emerging market economies, and its shares have declined over time.
Activity is highly concentrated in a few countries across all market segments: at the end of 2024, four economies accounted for 61% of the continent’s total outstanding corporate debt. However, even in these more active markets, the total debt volume remains limited by international standards. Outstanding corporate debt as a share of GDP, which is 52% at the world level, is below 15% in all but one of the 15 countries considered in the analysis in this chapter.
In addition to concentration at the country level, Africa’s syndicated loan and corporate bond markets are dominated by a few large, rated firms capable of issuing sizable volumes with long maturities. This reflects both the significant challenges smaller firms face in accessing bond markets and the continent’s limited number of cash flow positive companies that attract investor interest.
The shortage of investable assets is also visible in the region’s private credit markets. Despite rising international investor interest, more than half of the increase in AUM in Africa-focused funds between 2021 and 2024 consists of dry powder.
African countries remain highly dependent on foreign investors and service providers. In 2024, 53% of all outstanding non-financial corporate debt in Africa was denominated in US dollars, including 43% of syndicated loans and 100% of corporate bonds. Between 2000 and 2024, only 14 African countries saw corporates issuing any local currency debt. In addition, although African service providers have become more prominent over time, in 2024 foreign firms still managed nearly two-thirds of all non-financial corporate debt deals.
Attracting more foreign investment, which supports rather than replaces domestic market development, remains critical. African firms currently only account for 7% of long-term private foreign debt in low and middle-income countries, and only 17% of the region’s external debt is directed to private borrowers, with the rest going to governments.
High levels of informal employment and low incomes across much of Africa continue to constrain the growth of domestic institutional investors like pension funds. In 2024, African institutional investors held approximately USD 1.1 trillion in assets on aggregate, heavily concentrated in a few markets, notably Namibia and South Africa. Low allocations to domestic assets further restrict the role of institutional investors in supporting long-term growth across the continent.
Despite numerous initiatives across the continent, progress toward establishing a fully integrated pan-African debt market remains limited. The main obstacles include regulatory and legal differences across countries, fragmented market infrastructures, restrictions on institutional investors’ ability to invest across borders, and insufficient transparency and market data availability.
Key policies to develop corporate debt markets in Africa include expanding the pool of domestic institutional investor capital and encouraging its allocation to the domestic private sector, advancing regional integration, harmonising regulatory frameworks, and ensuring interoperability between market infrastructures.
Africa has a growing need for long-term finance which is not currently being served by its underdeveloped corporate debt markets. Instruments such as syndicated loans and corporate bonds, widely used in both advanced and emerging economies, play a minimal role in corporate financing across the continent. OECD data suggest that less than half (21 out of 54) of African countries have had at least one domestic firm issuing a corporate bond since 2000 (Figure 3.1, Panel A). Syndicated loans are more widespread, given the larger role of the banking sector (Panel B), but ten countries still show no recorded use of either of the two instruments in the last quarter of a century. Overall, corporate debt levels remain low in an international comparison, both in absolute terms and relative to GDP.
Note: A market is considered active if it has issued debt at least once since 2000.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details; IMF.
Several factors contribute to African firms’ limited use of corporate debt markets. These include structural issues such as weak and fragmented regulatory frameworks and market infrastructure, a high reliance on foreign capital, and the underdevelopment of domestic institutional investor bases – all of which are discussed in greater detail throughout this chapter. Additional barriers, covered in other chapters of this report, include limited sovereign bond markets, low levels of financial literacy and weak corporate governance frameworks.
In addition to capital market-specific issues, broader macroeconomic and political challenges – beyond the scope of this report – are major constraints to firms’ ability to access external financing and grow. One clear manifestation of these obstacles is persistently high yields on government bonds across many African economies, reflecting political and macroeconomic risk. Given that corporate debt is generally priced against sovereign debt, this makes borrowing costs prohibitively high for private companies. These dynamics underscore a mutually reinforcing relationship: stable political/macroeconomic conditions and well-functioning financial markets support each other. Equally, in a vicious cycle, unstable macro conditions hamper financial market functioning, which further destabilises macro conditions.
The connection between macroeconomic fundamentals and corporate debt market depth is clear when comparing GDP per capita with the size of corporate debt markets (measured as the total stock of syndicated loans and corporate bonds relative to GDP). A higher GDP per capita is associated with a more extensive use of corporate debt across broad regional groups (Figure 3.2, Panel A). The same relationship holds when looking at African countries individually (Panel B). Although the direction of causality, if any, between these two variables is hard to establish, it is safe to say that corporate debt markets are unlikely to emerge without a minimum level of macroeconomic and political stability.
Countries with higher GDP per capita tend to have larger corporate debt markets
Note: Panel A shows regional averages. Panel B excludes four outlier countries (Burundi, Liberia, Mauritius and Mozambique).
Source: OECD Capital Market Series dataset, LSEG, see Annex for details; IMF.
At the same time, adequate corporate access to debt markets can help drive economic development. Africa is currently significantly underrepresented in the use of corporate debt instruments both globally and within a broader group of emerging market economies compared to its GDP weight. This is particularly notable given that the continent’s economic weight is already small to begin with. In 2024, Africa accounted for 2.5% of global GDP and 6.1% of emerging market GDP, but only 1% of global outstanding corporate debt and around 5% of that of emerging markets (Figure 3.3, Panels A and B). Corporate bonds remain especially underutilised. Furthermore, since 2010, the gap between Africa’s economic weight within the group of emerging markets and its share of corporate debt has widened, even as its share of GDP has declined.
Africa is heavily and increasingly underrepresented in debt markets relative to its economic weight
Note: Private credit as a share of emerging markets is excluded due to limited granularity in the source data.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details; Preqin, IMF.
This decline is visible in absolute numbers too. Counter to the global trend of sharply increasing corporate debt levels since 2008, total outstanding corporate debt – bonds and syndicated loans – of African non-financial companies has decreased in real terms. Corporate bond issuance has been particularly weak, with outstanding amounts falling from USD 52 billion in 2010 to USD 38 billion in 2024 (Figure 3.4, Panels A and B). It bears noting that part of this contraction can be attributed to the depreciation of local currencies against the US dollar (although much of the outstanding African corporate debt is denominated in USD).
This is also reflected in the number of instruments issued. Corporate bond issuance has remained modest overall, with only two notable peaks in 2010 and 2014, when 64 and 85 bonds were issued, respectively. Excluding these years, the average annual number of bonds issued between 2000 and 2024 stands at just 13. The number of syndicated loans granted to companies has also been relatively limited, though it shows a modest upward trend, with the annual average rising from 46 in the 2000-2011 period to 77 in the 2012–2024 period.
Debt issuance and outstanding volumes have been on a declining trend in the last decade
Source: OECD Capital Market Series dataset, LSEG, see Annex for details; IMF.
There are significant differences in structure and development between African debt markets. Activity is highly concentrated in a small number of countries (Figure 3.5, Panel A). At the end of 2024, just four economies (South Africa, Egypt, Nigeria and Mauritius) accounted for 61% of the continent’s total outstanding corporate debt. The relative balance between bond and syndicated loan markets also varies significantly. Counter to global trends, syndicated loans typically dominate, but there are a few countries, such as Morocco, Tunisia and Gabon, where bond markets are larger (Panel B). This pattern is, however, less a reflection of robust corporate bond issuance and more the result of the effective absence of syndicated loan markets in those countries. In Tunisia and Gabon, for instance, the small number of outstanding corporate bonds are issued exclusively by financial companies. Even in the more active markets, corporate debt issuance remains modest in scale. Across Africa, the stock of corporate debt ranges from under 1% of GDP in many countries to 14% in South Africa, with Mauritius as a notable outlier with a much higher share (80%). In comparison, corporate debt as a share of GDP stands at 26% in emerging markets and 52% globally (Panel C).
Total debt-to-GDP levels remain low in Africa; syndicated loan markets are larger than corporate bond markets
Source: OECD Capital Market Series dataset, LSEG, see Annex for details; IMF.
In line with observations in other emerging markets (Cortina, Didier and Schmukler, 2018[1]), the maturities of both syndicated loans and corporate bonds in Africa are broadly comparable to those observed in advanced economies (Figure 3.6). However, this does not necessarily indicate wide availability of long-term finance in the region. In the African context, where overall corporate debt volumes are very limited, this maturity structure rather reflects the insufficient scale and depth of corporate debt markets, which are predominantly reserved for companies that can issue longer-term.
Debt instruments in Africa have similar maturities to those in advanced economies
Note: Refers to average maturity weighted by the value of the deals. Three year rolling averages.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
The dominance of large firms in African debt markets is also evident in the size of debt instruments in the region. Between 2000 and 2024, an annual average of 77% of corporate debt issuances by African firms were above USD 100 million (Figure 3.7, Panel A). The (average of annual) median corporate bond and syndicated loan were, respectively, USD 293 million and USD 287 million (Panel B). For comparison, in the United States, home to many of the world’s largest corporations, the equivalent figures are USD 432 million and USD 267 million.
Note: Panel A includes both corporate bonds and syndicated loans.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Similar dynamics are visible in the share of bonds with a credit rating from a major international rating agency. While the rise of smaller issuers has led to an increase in unrated bond issuance globally, this development has not taken place in Africa (Figure 3.8). The high share of rated issues (81% in 2024) in the region therefore reflects a lack of market access for smaller firms more than anything else.
The majority of corporate bonds in Africa are rated
Note: Refers to ratings by S&P, Moody’s and Fitch.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
In addition to corporate bonds and syndicated loans, private credit has emerged as a growing segment of the global corporate debt market in recent decades (OECD, 2025[2]). This growth is visible in Africa too, but counter to other markets, where funds typically come from alternative asset managers or traditional institutional investors, African private credit has largely been supplied by Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) (FSD Africa, 2018[3]). Private credit investment by traditional institutional investors in Africa remains limited, with portfolios instead heavily concentrated in sovereign debt, with minimal exposure to alternative asset classes (see section 3.2.2 and chapter 8). This is often attributed to a lack of local expertise and capacity to assess the risks associated with these types of assets, as well as the relatively recent introduction of regulations governing investments in alternative asset classes.
On the demand side, a key constraint is the limited pipeline of viable projects and investable companies of sufficient size. This is visible when looking at dynamics in foreign investor participation in Africa’s private credit market. Although several international alternative asset managers have launched funds targeting the region – BluePeak’s (2025[4]) fund backed by European DFIs being one of the more recent examples – many such funds have scaled back or exited the region in recent years (WSJ, 2017[5]; 2019[6]). A notable sign of this latter challenge is the composition of total assets under management in Africa-focused funds. Although there has been substantial growth since 2021 (Figure 3.9), half of this growth consists of dry powder (committed capital that has not yet been allocated to specific investments). For comparison, dry powder accounted for less than one-third of total AUM globally in 2024. This underscores the point that, despite growing investor interest and commitments, significant barriers remain to channel this demand into actual investment activity in the region.
Despite recent growth in AUM of private credit funds, a substantial share remains undeployed
Note: AUM data refer to closed-end, unlisted private credit funds.
Source: Preqin.
Drawing on the empirical mapping in the last section, the present section highlights four areas for policy reform to support further market development: foreign dependence; domestic institutional investors; attracting international investment; and market infrastructure.
3.2.1. Foreign dependence
While foreign investment and know-how are bedrock elements of building strong domestic capital markets in emerging economies, excessive reliance on foreign actors in capital markets can expose countries to sudden capital outflows and volatile financing conditions. In addition, in excess, it can limit the development of domestic capabilities. Such dependency might therefore threaten financial stability and limit domestic policy space, as governments become more vulnerable to foreign risk perceptions and exchange rate pressures. One of the most obvious indicators of foreign dependence is the share of debt denominated in foreign currencies. Emerging markets have seen an increase in the share of non-financial debt issued in local currency over time. Excluding China (where local currency bonds made up 96% of issuance in 2024), the local currency share in emerging markets stood at 43% at the end of 2024, up from 12% in 2000. Although Africa has also seen an increase, the majority of issuance (60% in 2024) is still denominated in foreign currencies (Figure 3.10, Panel A). Most local currency denominated borrowing takes place in the syndicated loan market (Panel B), whereas the share of local currency corporate bond issuance has in fact decreased since 2000 (Panel C).
The US dollar remains the dominant currency for non-financial debt issuance across Africa, accounting for 53% of total debt issued in 2024, including 43% of syndicated loan issuances and 100% of corporate bond issuances. Beyond capital markets, the USD is also widely used to settle intra-African trade transactions and to price essential goods such as oil, wheat and medicines (Gopaldas, 2025[7]). While foreign investment plays a positive role for the economy, a high concentration of currency exposure tied to a single country can constrain a state’s ability to act in the best interest of domestic growth (Kentor and Boswell, 2003[8]). Several efforts have already been introduced to reduce reliance on foreign currencies. The African Local Currency Bond (ALCB) Fund was established in 2012 by the KfW Development Bank and the German Federal Government to promote local currency bond issuance on the continent. The fund acts as a pan-African anchor investor in local currency corporate bonds and provides technical assistance to financial service providers. It invests in companies operating in developmental sectors whose ultimate beneficiaries are lower-income households and micro, small and medium enterprises. Other than local issuers, investors and intermediaries bringing innovative transactions in the local market are also eligible (ALCB Fund[9]). By the end of 2024, the fund had USD 214 million invested across 39 different companies (ALCB Fund, 2024[10]).
Outside of bond markets, there are broader currency initiatives such as the Pan-African Payment and Settlement System (PAPSS), launched in 2022, which facilitates cross-border transactions in local currencies within the continent (PAPSS[11]). In 2025, PAPSS, in collaboration with Interstellar, an African technology company, announced the launch of the PAPSS Africa Currency Marketplace that would allow the direct exchange of African currencies without passing through hard currencies (PAPSS, 2025[12]).
Corporate debt issuance in Africa is still mostly denominated in foreign currencies
Note: Three year rolling averages.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Reflecting the limited use of local currencies in debt issuance in the region, only 14 African countries have had corporates borrowing in local currency from either the bond or syndicated loan markets between 2000 and 2024. Only five have seen local currency corporate bond issues (Figure 3.11, Panel A). South Africa, by far Africa’s largest market, has the highest share of non-financial corporate debt issues in local currencies (35%), followed by Kenya (16%) and Senegal (16%). Only seven economies expanded their share of locally denominated syndicated loans between 2000-2010 and 2011-2024 (Panel B). Tracking changes over time in corporate bond markets is more challenging given the segment’s general underdevelopment in the region. Ghana and Mauritius have never recorded a local currency bond issuance. South Africa, the only country that recorded local currency corporate bond issuance for both time periods, exhibits a declining trend in local currency issuance from 38% during 2000-2010 to just 10% between 2011-2024. Senegal stands out as all corporate bond issuances between 2011 and 2024 were in local currency, but overall amounts are very small (Panel C).
Denominating debt in foreign currency shifts the exchange rate risk from the lender to the borrower. Given the high exchange rate volatility of many African currencies, this exposes issuers to significant risks and creates a need for currency hedging which, given the very same volatility, is often extremely costly (EIB, 2022[13]). There are a number of international initiatives to address this issue (see Box 3.1). Even though the West and Central African CFA franc, as well as eight1 other countries in the region have de jure pegged currency regimes (Boris, 2025[14]; IMF, 2004[15]), which decreases the volatility of the exchange rate, they require significant adjustments if the peg becomes unsustainable (Horrocks et al., 2025[16]).
Only 14 African countries have seen corporate debt issues denominated in local currency since 2000
Note: Aggregate figures over the periods. Companies in Botswana, Cameroon, Côte d'Ivoire, Gabon, Kenya, Namibia, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe have not issued any corporate bonds between 2000 and 2024; in Mauritius, Morocco, Nigeria and Senegal there were no issues between 2000 and 2010; and in Egypt and Ghana there were none between 2011 and 2024.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Initiatives such as the Currency Exchange Fund (TCX) have been launched to address challenges associated with exchange rate risks in emerging economies. TCX was established in 2007, backed by development finance institutions, microfinance investment vehicles and European governments to offer instruments such as forward contracts and cross-currency swaps in frontier and developing markets, where such derivates markets had not yet developed. The fund offers currency risk mitigation strategies for all African currencies except for those of Eritrea, Somalia, Sudan, South Sudan and Zimbabwe. Since 2013, the fund has been hedging payment obligations deriving from bonds denominated in local currencies (TCX[17]). In several African countries, firms have already benefited from partnerships between TCX and the ALCB Fund which supports local currency corporate bonds by making significant early investments. These early commitments help build market confidence and attract additional private capital (TCX, 2018[18]). In 2024, TCX hedged bonds denominated in ten different African currencies, for a total value of USD 80 million, half of which was denominated in Tanzania shilling. TCX has expanded its presence in Africa by offering swaps at subsidised rates through the EU Market Creation Facility’s Pricing Facility, a joint initiative by TCX, KfW and the European Commission (TCX, 2024[19]).
International organisations have also introduced measures to mitigate exchange rate risk and support the growth of local currency capital markets. The International Finance Corporation (IFC), for instance, offers local currency financing in almost 60 emerging market currencies. Moreover, it provides interest rate and cross currency swaps to help borrowers hedge existing and new foreign currency denominated liabilities.
By sourcing local currency through swap agreements with market participants, the IFC contributes to the development of local derivative markets. The IFC has also expanded the range of eligible counterparties to include local central banks, enabling local currency financing even in markets where commercial swap options are unavailable (IFC, 2017[20]).
African corporate debt markets are reliant on foreign actors not only in terms of currency, but also in terms of infrastructure and service providers. In 2024, just over a third (37%) of non-financial corporate debt issues in Africa were managed by African financial institutions. This is a significant increase from only 1% in 2000, but still indicative of persistent structural gaps in the local financial advisory sector (Figure 3.12, Panel A). Notably, African advisory activity is highly concentrated in four countries – South Africa, Egypt, Nigeria and Togo – that have accounted for over 90% of all African bookrunner activity in the non-financial corporate debt market since 2000 (Panel B), underscoring the uneven development of capital market infrastructure across the region. The increase in the share of African bookrunners has been offset primarily by a decrease in European institutions’ share, which fell sharply from 71% to 25% over the same period. Asian institutions have considerably increased their share since 2015.
Most non-financial corporate debt issuance in Africa is managed by foreign bookrunners
Note: Refers to non-financial company debt (both corporate bond and syndicated loan transactions). In Panel B, the 100% bar for “Other” in 2000 refers to Ghana. All Togo-registered transactions refer to Ecobank Transnational.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Policy considerations
The degree of foreign dependence in an economy’s debt markets, notably the use of foreign currencies, is to large extent a function of broader macroeconomic factors beyond the scope of this report. However, there are capital market-specific measures that policymakers can use to facilitate the development of local currency corporate debt markets. This includes supporting the emergence of financial instruments that help borrowers and investors hedge against exchange rate risk. Although international institutions currently offer some hedging options, in some emerging markets local central banks have played an additional role by offering currency hedges to foreign investors through non-deliverable forwards, reducing exchange rate risk and encouraging greater foreign participation (BIS, 2019[21]). Additionally, building local expertise in financial advisory services is essential. To achieve this, policymakers could require the inclusion of at least one local firm in bookrunning syndicates and collaborate with international institutions to facilitate knowledge transfer and capacity building.
3.2.2. Domestic institutional investors
Building a sufficiently large pool of local capital that provides funds to the private sector will be imperative to meet Africa’s long-term financing needs and reduce dependence on foreign funding, while also mitigating the effects of associated risks such as exchange rate volatility. Recent estimates indicate that institutional investors across Africa (pension funds, insurance companies, sovereign wealth funds and development banks) collectively hold approximately USD 1.1 trillion in assets (AFC, 2025[22]). That is equivalent to about 40% of Africa’s 2024 GDP. Around USD 455 billion of this is held by pension funds, while insurance companies account for about USD 320 billion.
The size of institutional capital in Africa and its potential to support economic development are heavily constrained by low-income levels and high rates of informal employment, which average 83% across the continent and reach up to 92% in Central Africa (ILOSTAT[23]). Nonetheless, demographic trends such as a growing population and rising life expectancy put the continent in a strong position to implement reforms that support the expansion of institutional investor assets, particularly in pension funds and life insurance. These actors, due to their asset-liability structures, are especially well-suited to providing long-term financing.
The development of the institutional investor sector varies significantly across African countries, with assets highly concentrated in a few markets. In terms of total pension fund assets as a share of GDP, two countries stand out: Namibia, where assets amount to 104% of GDP – more than double the OECD average (see chapter 8) – and South Africa, with assets equivalent to 96% of GDP (Figure 3.13). These cases illustrate how sustained policy and regulatory efforts can encourage pension savings. In Namibia, occupational pension funds have achieved broad participation among formal sector workers. The system is supported by favourable tax incentives: employer and employee contributions are tax-deductible up to certain limits, investment returns are tax-exempt, and only two-thirds of retirement benefits are subject to taxation (IPOS, 2020[24]). In South Africa, the largest market in absolute terms, a series of reforms over the past decade have aimed to improve retirement outcomes. These include mandatory annuitisation, harmonised tax treatment across retirement products, and the promotion of individual savings. More recently, reforms have focused on extending coverage to informal and uncovered workers and on designing more attractive products targeting young savers (APSA, 2024[25]). Nonetheless, across much of Africa, despite some growth in pension assets over recent years, levels remain low, which consequently limits the development of capital markets in general and corporate bond markets in particular.
Pension assets remain limited in most African countries
Note: Assets reported include the following – Namibia: pension fund assets as reported by the Bank of Namibia; South Africa: official retirement funds and private retirement funds as reported by the South African Reserve Bank; Botswana: pension fund assets as reported by NBFIRA; Uganda: AUM of retirement benefits schemes as reported by URBRA; Mauritius: private pension assets as reported by the Bank of Mauritius; Nigeria: pension fund assets as reported by RSA; Ghana: private pensions fund assets and assets under BNSSS as reported by NPRA. Data for Mauritius in 2018 are unavailable. Latest data available for Ghana is 2023.
Source: Central bank and regulatory agency reports.
Equally important as the total pool of capital is the allocation of those assets, particularly the extent to which they are invested in domestic corporations. To promote domestic investment, some countries impose limits on the proportion of assets that can be invested abroad. For example, South Africa sets a maximum of 45% (South African Reserve Bank, 2022[26]) and in 2023 Botswana raised its domestic investment requirement from 30% to 38%, initiating a gradual increase aimed at reaching 50% by 2027. (NBFIRA, 2023[27]; World Bank, 2023[28]). Ghana takes a more stringent approach, generally restricting pension funds from investing more than 5% of their assets outside the country (NPRA[29]), which helps explain why domestic investment by pension funds is considerably higher in Ghana compared to other African countries shown in Figure 3.14.
Across the continent, domestic allocations tend to be very conservative, with a strong preference for sovereign rather than corporate bonds (Panel B). As previously discussed, this trend is partly tied to the high yields on sovereign bonds, reducing investor incentives to engage with other asset classes, together with the limited number of sufficiently large corporations capable of issuing corporate bonds.
Pension funds tend to favour sovereign over corporate bonds in their domestic allocations
Source: Central banks and regulatory agency reports.
Although data on the allocation of insurance assets are less comprehensive, making regional comparisons more difficult, the overall picture is similar to that of pension funds, with assets heavily concentrated in a few countries (AFC, 2025[22]). Life insurance assets, which are well-suited to long-term investment, account for very different shares of total insurance assets across different African countries (Figure 3.15, Panel A). They are rather small in most countries. With the exception of South Africa, life insurance assets represent less than a third of GDP across the countries included in the analysis (and likely across the region, given that countries with available data tend to have larger asset bases). Regardless of portfolio allocation, the insurance sector’s investments in the private sector are therefore necessarily very limited in absolute terms.
Long-term insurance assets remain limited in most African countries
Source: Central banks and regulatory agency reports.
Policy considerations
While high levels of informal employment and low incomes across much of Africa are the main constraints to the growth of domestic institutional investors, more sector-specific policy actions can also help channel capital towards productive investment in the real economy. To expand the pool of capital available for investment, governments should focus on increasing pension coverage by promoting the development of both occupational and individual pension funds among the working population. The current conservative asset allocation by pension funds, with a strong preference for government securities, is also a major barrier to institutional investment in local businesses. Policies should aim to encourage more diversified asset allocation strategies, including a greater share of investments in the private sector. In countries where there are regulatory limits on such investments, raising the ceilings for allocations to corporate bonds, equities and other private instruments could support this goal. However, it is important to note that in many cases current institutional investor allocations remain well below regulatory limits. This suggests the need for a holistic, long-term strategy for developing both the domestic economy and the capital markets in parallel, including measures to strengthen the pipeline of investable projects by enhancing the creditworthiness, scale and visibility of local firms, making them more attractive to institutional capital.
3.2.3. Attracting international investment
Efforts to promote domestic investment and reduce foreign dependence in certain areas should not be viewed as incompatible with attracting greater international investment in African capital markets. On the contrary, international capital plays a critical complementary role in supporting the development of domestic markets. Increased foreign investment does not imply dependence if it goes into well-diversified markets with a strong domestic component.
Long-term foreign debt to the private sector is limited in Africa. As of end-2023, African companies accounted for just 7% of the total long-term debt stock extended by foreign creditors to the private sector in low- and middle-income countries. In contrast, companies in East Asia and the Pacific, and in Latin America and the Caribbean, accounted for 36% and 28%, respectively (Figure 3.16, Panel A). Africa is also the region where the private sector receives the lowest share of total foreign debt standing at just 17% at the end of 2023, a 6 percentage point decrease from a decade before (Panel B), indicating a stronger investor preference for government bonds in Africa compared to other emerging regions.
Africa receives the lowest share of long-term foreign debt to the private sector among emerging markets
Note: Data are shown for low- and middle-income countries that report to the World’s Bank Debtor Reporting System. Refers to long-term (maturity > 1 year) lending by all foreign investors (public/multilateral and private). Considers both publicly guaranteed and non-guaranteed private sector debt. Excludes IMF Special Drawing Right allocations and credit. Debt stocks as of year-end.
Source: World Bank International Debt Statistics.
Inclusion in international indices enhances firms’ visibility and credibility, helping channel international investment. Many international institutional investors allocate capital mechanically based on indices, so once a firm is included it automatically benefits from increased investment flows. This increase in demand for a firm’s debt can lower borrowing costs and, in turn, create a virtuous cycle of corporate growth and greater foreign investor participation.
On aggregate, Africa’s representation in the JP Morgan CEMBI Broad index, which tracks US dollar-denominated corporate bonds issued by emerging market firms, exceeds its GDP share among participating countries. However, this is largely driven by South Africa, which has a disproportionately high weight in the index compared to other African markets and to its GDP. When South Africa is excluded from the analysis, the rest of Africa is significantly underrepresented in the index relative to its economic weight (Figure 3.17).
Excluding South Africa, Africa is underrepresented in a major bond index compared to its economic weight
Note: Index weights are as of June 2025. The analysis includes 62 countries, corresponding to those included in the index at the time of analysis. GDP weights are as of end-2024.
Source: OECD calculations based on JP Morgan.
International emerging market corporate debt indices typically include only hard currency-denominated bonds. Given that most corporate bonds across Africa are denominated in foreign currencies, primarily US dollars (see section 3.2.1), the underrepresentation of Africa shown in Figure 3.17 is even more striking.
A key factor limiting international investor participation is the lack of adequate investor protection and corporate governance frameworks. Clear legal rights for investors and associated enforcement mechanisms are key to reducing investor risk and building market credibility. In African markets, where investor confidence remains fragile and corporate bond issuance is limited, the absence of strong bondholder safeguards can deter long-term investment. A recent example highlights the consequences of shortcomings in governance and disclosure frameworks. In 2016, a financial institution in Kenya was placed under receivership and subsequent liquidation following liquidity problems, poor governance and revealed insider loans just months after it had issued a KSh 4.8 billion (at the time approximately USD 49 million) bond. When the bank defaulted, bondholders faced substantial losses. This situation reduced the demand for corporate bonds in the country in subsequent years and highlights the risks investors face in the absence of effective frameworks (Reuters, 2015[30]; BBC, 2016[31]; Bloomberg, 2024[32]). Beyond reinforcing corporate governance frameworks to prevent such failures (see chapter 2), the region would also benefit from more robust insolvency procedures. These are essential to building investor trust and attracting long-term foreign capital to Africa’s corporate bond markets.
In addition, regional harmonisation of regulatory frameworks can reduce legal uncertainty for investors, particularly foreign ones, and lower the cost of investing across borders, thereby facilitating greater international participation. This is particularly relevant as many large foreign investors have regionally focused asset allocations for smaller markets. The greater the regional harmonisation, the less due diligence needed and the lower the barrier for international investment flows to fund domestic economies. One such aspect is the design of insolvency frameworks. In Africa, a notable example is the OHADA (Organisation for the Harmonisation of Business Law in Africa) framework, which covers 17 Western and Central African countries. The OHADA Insolvency Law, revised in 2015, seeks to streamline insolvency procedures across member states. Its objectives include preserving economic activity and employment, facilitating the restructuring of viable companies and clearly defining the order of creditor payments (OHADA, 2015[33]). This harmonised approach could serve as a model for other parts of Africa, helping to foster cross-border investment by enhancing predictability and investor confidence in insolvency proceedings.
Beyond insolvency, aligning bond issuance frameworks and standardising required documentation would improve comparability across issuers and streamline the investment process. At the same time, it would lower issuance costs and simplify the process for companies seeking to raise debt in multiple markets. It could therefore increase both the supply of and demand for corporate bonds across African markets.
An example that could guide Africa in this direction (although not strictly comparable given differences in legal mandates) is the European Union’s Prospectus Regulation, which introduced a cross-border passporting mechanism. Under this framework, a prospectus approved by one Member State can be used across all EU countries, effectively creating a single investment document valid throughout the bloc (European Union, 2017[34]). In Africa, while progress is being made in some regional blocs, for example with the development of the BRVM in West Africa which functions as a shared stock exchange and operates under harmonised regulatory oversight, there is still no broader bond passporting system across the continent. Developing such a framework would be a significant step towards deeper African capital market integration and broader access to finance across the continent.
Limited transparency about firms’ creditworthiness is another factor that discourages investors, especially international ones, from investing in corporate debt. This is evident in smaller firms’ (which often lack access to credit ratings) limited use of debt markets (Figure 3.8).
Some countries in Africa have sought to enhance creditworthiness and support the development of bond markets through direct guarantees. One example is InfraCredit in Nigeria, a specialised institution that provides credit guarantees to support local currency infrastructure financing. It is backed by key institutions including the Nigeria Sovereign Investment Authority, the Africa Finance Corporation and the African Development Bank, and aims to enhance the credit quality of infrastructure debt instruments and mobilise long-term domestic capital, particularly from pension funds and insurance firms. By focusing on sectors such as renewable energy, housing, telecommunications, transportation and water infrastructure, they have mobilised over NGN 300 billion (approximately USD 190 million), supported 12 first-time issuers and helped 22 infrastructure projects reach financial close (InfraCredit[35]).
Another example is the Development Bank of Southern Africa (DBSA). While it does not directly provide credit guarantees for corporate bond issuance, it has the objective of enhancing the credit quality of issuers through other means (DBSA[36]). This includes providing subordinated debt or first-loss capital, which helps reduce the risk exposure for other investors making the projects more attractive. In addition, DBSA supports the preparation and structuring phase of the project, which can help companies and infrastructure projects improve their financial profile and become creditworthy enough to access bond markets.
It bears noting, however, that many African countries may face limited fiscal space to implement these types of interventions, which often depend on public financial support or guarantees. It should also be emphasised that promoting the dissemination of information about firms’ creditworthiness (such as through expanding rating coverage) is distinct from extending credit guarantees and can be done without fiscal impact.
At the regional level, one recent initiative has been the establishment of the Africa Credit Rating Agency (AfCRA), promoted by the African Union and created in response to concerns about the methodologies used by international credit rating agencies. Governments of African countries have criticised these methodologies for reflecting biases, lacking contextual understanding of African economies, and involving insufficient engagement with domestic authorities. In an effort to address these limitations, the AfCRA aims to offer more transparent assessments considering local knowledge and context (African Union, 2025[37]). Although the initiative’s initial focus is on sovereign ratings, by strengthening investor confidence in the region it can also enhance the attractiveness of corporate bond markets. The establishment of an alternative credit rating agency aimed at providing, from African governments’ perspective, a more comprehensive view than the international credit rating agencies also highlights a broader challenge in the region: the limited availability of reliable and comprehensive borrower information necessary for accurate risk assessment, both for sovereign and corporate debt.
Finally, a well-developed sovereign yield curve across maturities is critical to attracting international (as well as domestic) investment and to the growth of corporate bond markets more broadly. A liquid sovereign curve gives investors greater confidence and transparency regarding expected returns, thereby helping them guide their investment decisions, and provides corporations seeking long-term finance with a reliable benchmark for pricing (Grundy, van Bekkum and Verwijmeren, 2024[38]). In many African countries, underdeveloped government debt markets prevent the emergence of such a benchmark curve (see chapter 5). The establishment of a liquid yield curve requires, among other factors, a strong legal and institutional framework that ensures predictable and transparent public debt issuance. Elements identified as key to develop such a framework include a clearly defined borrowing authority, effective market conduct regulation and enforcement, robust protection of investor assets, and the avoidance of tax policies that discourage participation in government bond markets (IMF/World Bank, 2021[39]). In the West African Economic and Monetary Union (WAEMU), the regional agency Agence UMOA-Titres was established in 2013 with the aim of improving the functioning of the government securities market by enhancing transparency, predictability and coordination among member states. The initiatives have helped reduce investor uncertainty and supported the gradual lengthening of bond maturities (IMF/World Bank, 2021[39]).
Policy considerations
Ultimately, to attract greater foreign investment into Africa’s private sector and increase representation in global indices, it is essential to implement legal and regulatory reforms that reduce investor risk and offer clear incentives to invest. These include strengthening disclosure requirements to align with international standards and adopting policies that improve the availability and quality of corporate data. Enhancing bondholder protection, establishing more predictable insolvency procedures, and advancing regulatory harmonisation across the region are also essential steps to building market credibility and fostering sustained foreign interest in local investment opportunities. In addition, efforts should be undertaken to collect and disclose data on the financial performance of existing firms and the risk-return profiles of past investment projects and to promote the development of benchmark sovereign yield curves, drawing from existing regional initiatives.
3.2.4. Market infrastructure
Dynamic capital markets require a solid underlying market infrastructure. This ensures the safe depository of securities, supports accurate recordkeeping, reporting and settlement, and lowers transaction costs. It mitigates risk while enhancing the efficiency and transparency of market operations, ultimately reducing the cost of raising capital for businesses and making it easier for investors to allocate funds.
All African countries addressed in this chapter operate a stock exchange that facilitates listing of both equities and bonds (Table 3.1). Côte d'Ivoire and Gabon do not have national exchanges but participate in regional markets, the Bourse Régionale des Valeurs Mobilières (BRVM)2 and the Bourse des Valeurs Mobilières d’Afrique Centrale (BVMAC)3, respectively. Formal over-the-counter (OTC) trading platforms for corporate bonds are rare, existing only in Kenya, Nigeria and South Africa. Most bonds in Africa are publicly issued and listed on exchanges (Oluoch and Ojah, 2023[40]).
Although the Namibia Securities Stock Exchange and BVMAC still depend on external central securities depositories (CSD), both have committed to establishing their own systems. In most markets, clearing and settlement systems are integrated in the CSD infrastructure, with the exception of the Johannesburg Stock Exchange, where the functions are handled by separate entities. Settlement systems are automated everywhere except in Namibia, but settlement cycles remain longer than in advanced markets, many of which have moved to T+1 (US and Canada) or are planning to do so (EU, Switzerland, UK). Shortening settlement cycles can lower costs, improve efficiency, and reduce credit, counterparty, and settlement risk, particularly during periods of high market volatility (HSBC[41]).
Note: The settlement cycle for Egypt refers to securities registered at the CSD other than government bonds and bills. Egypt, Ghana, Morocco, Tunisia, Uganda have OTC markets but not for corporate bonds. In Namibia, trades in equities listed in both the NSX and the JSE are settled through South Africa’s CSD.
Source: Botswana Stock Exchange, The Egyptian Exchange, Ghana Stock Exchange, Stock Exchange of Mauritius, Bourse de Casablanca, Maroclear, Namibia Securities Stock Exchange, Nigeria Exchange, Central Securities Clearing System, Johannesburg Stock Exchange, Strate, Dar es salaam Stock Exchange, CSDR, Bourse de Tunis, Tunisie Clearing, Lusaka Securities Exchange, Zimbabwe Stock Exchange, Bourse Régionale des Valeurs Mobilières, Bourse des Valeurs Mobilières de l’Afrique Central, Central Depository / Settlement Bank (DC/BR).
Regional integration of capital markets can allow countries to broaden their investor base, thereby expanding corporate access to finance, as well as reap economies of scale in terms of market infrastructure. Greater integration also facilitates the transfer of best practices and technical expertise across borders. Several African governments, often in collaboration with financial institutions, have launched initiatives in this respect. The African Development Bank launched the Capital Markets Development Trust Fund (CMDTF) in 2019 to support such efforts. However, by the end of its first phase in 2022, West Africa was the only region to have successfully implemented projects financed with CMDTF resources (African Development Bank Group[42]).
The West African Capital Markets Integration Council, established in 2013, serves as the governing body for integrating the capital markets of Cabo Verde, Ghana, Nigeria and Sierra Leone with the BRVM. The AfDB’s fund has helped support the region in advancing towards a unified environment for issuing and trading financial securities through the West African Securities Market, which aims to grant access to all qualified brokers within West Africa. Currently, brokers registered in any member jurisdiction can trade on other exchanges via local agents, allowing companies listed on one exchange to be accessible for transactions by all brokers across the region (WACMIC[43]).
The East African Community (EAC) – comprising Burundi, Kenya, Rwanda, Tanzania and Uganda – also has initiatives in place to promote capital market integration. It has launched the Capital Market Infrastructure (CMI) technology platform designed to connect member countries’ capital markets. The CMI enables cross-border electronic trading of stocks through brokers with sponsored membership. It is built on an automated trading system, which was previously lacking in Burundi and Rwanda, thereby harmonising standards across the region (EAC[44]). In 2024, the East Africa Bond Exchange received approval from the Kenyan Capital Markets Authority to establish and operate an OTC securities exchange and to function as an autonomous self-regulatory organisation within the country. It aims to expand its operations beyond Kenya through the East Africa region and thus becoming a regional OTC platform for the trading of fixed income products, including repurchase agreements, treasury securities, commercial paper, corporate listings and alternative assets (EABX, 2024[45]).
The stock exchanges in Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, the Seychelles, South Africa, Tanzania, Zambia and Zimbabwe formed the Committee of Southern Africa Development Community (SADC) Stock Exchanges in 1997 to enhance the attractiveness of regional securities markets to both local and international investors and reduce disparities between large and small exchanges. In 2006, member states adopted the Finance and Investment Protocol, committing to remove barriers to intra-regional economic activity and harmonise regulatory frameworks, including listing requirements. Further integration came in 2013 with the launch of the Integrated Regional Electronic Settlement System, a shared payment and settlement platform that enables real-time cross-border transactions within the SADC region using the South African rand (South African Institute of International Affairs, 2019[46]).
Note: Tanzania is a member of both the SADC and EAC.
Source: West African Capital Markets Integration Council, East African Community, East Africa Bond Exchange, Committee of Southern Africa Development Community (SADC) Stock Exchanges.
At the pan-African level, the African Securities Exchanges Association (ASEA) was established in 1993 to promote capital market development across member states by facilitating information exchange and increasing global visibility to attract investment flows into African markets. Today, ASEA represents 25 stock exchanges in 37 African countries. In line with the African Union’s Agenda 2063, which identifies the creation of a Pan-African Stock Exchange (PASE) as a priority (African Union[47]), ASEA has partnered with the AfDB to launch the African Exchanges Linkage Project (AELP). This initiative aims to strengthen regional integration by enabling cross-border securities trading through the platform, an order-routing system that allows brokers to place investors’ orders with executing brokers in other markets. Initially piloted with seven exchanges – BRVM, Egypt, Kenya, Mauritius, Morocco, Nigeria and South Africa – the project has since expanded to ten, adding Botswana, Ghana and Uganda. While its current functionality mirrors similar integration efforts in West and East Africa, AELP ultimately seeks to establish a fully integrated pan-African exchange (Oxford Business Group, 2022[48]). In order to reach the objective, the appropriate infrastructure, other than the exchange, has to be put in place.
Policy considerations
Corporate debt markets in Africa, particularly those involving corporate bonds, can be significantly enhanced through the development of stronger and more integrated market infrastructures. With the ultimate aim of moving towards more pan-African activity, countries should collaborate to develop a regional integrated CSD that would ease cross-border settlement and lower related costs. In this context, countries without a national CSD in place could bypass that step and join the regional system directly. Although many countries already operate automated payment and settlement systems, policymakers could consider reducing settlement times to meet international standards, which may help boost liquidity.
On a broader scale, enhancing regional market integration enables countries to pool liquidity and attract a broader base of investors. While various regional and pan-African initiatives aim to foster market connectivity, policymakers could take further steps to address challenges that would accelerate this process. Key obstacles include differences in exchange rate systems, levels of capital account liberalisation, issuance standards and legal frameworks, all of which hinder the creation of a unified pan-African market. Moreover, since institutional investors play a crucial role in driving capital market activity, restrictions on their holdings of foreign assets further constrain cross-border capital flows (see section 3.2.2). Finally, policymakers should focus on improving data transparency regulations, as the expected benefits of initiatives like the AELP depend on financial intermediaries having reliable information about opportunities in other markets, whereas many currently lack sufficient access to the necessary data for informed decision-making.
References
[22] AFC (2025), State of Africa’s Infrastructure Report 2025, https://www.africafc.org/our-impact/our-publications/state-of-africa-infrastructure-report-2025.
[42] African Development Bank Group (n.d.), Capital Markets Development Trust Fund, https://www.afdb.org/en/topics-and-sectors/initiatives-and-partnerships/capital-markets-development-trust-fund.
[37] African Union (2025), An Africa Credit Rating Agency (AfCRA), https://au.int/sites/default/files/documents/44466-doc-Brief_-_Africa_Credit_Rating_Agency_AfCRA.pdf.
[47] African Union (n.d.), Goals & Priority Areas of Agenda 2063, https://au.int/agenda2063/goals.
[10] ALCB Fund (2024), Quarterly Factsheet Q4 2024, https://cdn.prod.website-files.com/674d781640f36d3c8f7cbc9f/680a2d1c5a7d60919eaafbfa_CygCap%20ALCBF%202024%20Q4%20Factsheet%20-%20Public.pdf.
[9] ALCB Fund (n.d.), Supporting the development of African Capital Markets, https://www.alcbfund.com/.
[25] APSA (2024), A journey to reform the retirement system: South Africa’s experience and prespective, https://www.africapsa.org/wp-content/uploads/2024/02/pinBox-Book_A-Journey-to-Reform-the-Retirement-System-South-Africas.pdf.
[31] BBC (2016), Kenya’s Chase Bank placed under receivership by CBK, https://www.bbc.com/news/world-africa-35989394.
[21] BIS (2019), Exchange rates and monetary policy frameworks in emerging market economies, https://www.bis.org/speeches/sp190502.htm.
[32] Bloomberg (2024), Kenya Bond Tax Seen as New Hurdle for Tiny Corporate Debt Market, https://www.bloomberg.com/news/articles/2024-06-26/kenya-bond-tax-seen-as-new-hurdle-for-tiny-corporate-debt-market.
[4] BluePeak PC (2025), BluePeak Private Capital announces the first close of Fund II, https://www.bluepeakpc.com/news-detail-page/12.
[14] Boris, P. (2025), Africa’s Currency Landscape: Strongest Currencies, Backing & Regimes, https://techcultureafrica.com/african-currencies.
[1] Cortina, J., T. Didier and S. Schmukler (2018), Corporate Borrowing in Emerging Markets: Fairly Long Term, but Only for a Few, World Bank Group, https://documents1.worldbank.org/curated/en/363821539842744052/pdf/130976-BRI-PUBLIC-Corporate-Borrowing-in-Emerging-Markets.pdf.
[36] DBSA (n.d.), About us, https://www.dbsa.org/about-us.
[45] EABX (2024), Approval of EABX company limited, https://www.eabxgroup.com/approval-of-eabx-company-limited-as-an-over-the-counter-securities-exchange-and-recognition-as-a-self-regulatory-organization/.
[44] EAC (n.d.), Capital Markets Infrastructure adding value to East Africans, https://www.eac.int/financial/capital-markets-infrastructure.
[13] EIB (2022), A structural analysis of foreign exchange markets in sub-Saharan Africa, https://www.eib.org/en/publications/economics-working-paper-2022-11.
[34] European Union (2017), REGULATION (EU) 2017/1129 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL, Official Journal of the European Union, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R1129.
[3] FSD Africa (2018), Private debt markets in Africa, https://fsdafrica.org/publication/private-debt-markets-markets-in-africa/.
[7] Gopaldas, R. (2025), Afriica and the push towards de-dollarisation: is it needless or necessary?, https://www.ntu.edu.sg/cas/news-events/news/details/africa-and-the-push-towards-de-dollarisation.
[38] Grundy, B., S. van Bekkum and P. Verwijmeren (2024), “Complementarity of sovereign and corporate debt issuance: mind the gap”, Review of Finance, Vol. 28/4, pp. 1187-1213, https://doi.org/10.1093/rof/rfae006.
[16] Horrocks, P. et al. (2025), “Unlocking local currency financing in emerging markets and developing economies: What role can donors, development finance institutions and multilateral development banks play?”, OECD Development Co-operation Working Papers, No. 117, OECD Publishing, Paris, https://doi.org/10.1787/bc84fde7-en.
[41] HSBC (n.d.), T+1 Settlement Cycle, https://www.gbm.hsbc.com/en-gb/financial-regulations/tplus1-settlement-cycle.
[20] IFC (2017), IFC Local Currency and Hedging Solutions, https://www.ifc.org/content/dam/ifc/doclink/2017/201710-ifc-local-currency-and-hedging-solutions.pdf.
[23] ILOSTAT (n.d.), Labour Force Statistics (LFS) database, https://ilostat.ilo.org/data/snapshots/informal-employment-rate/.
[15] IMF (2004), Classification of Exchange Rate Arrangements and Monetary Policy Frameworks, https://www.imf.org/external/np/mfd/er/2004/eng/0604.htm.
[39] IMF/World Bank (2021), “Guidance Note For Developing Government Local Currency Bond Markets”, Analytical Notes, Vol. 21/001, https://doi.org/10.5089/9781513573922.064.
[35] InfraCredit (n.d.), InfraCredit, https://infracredit.ng/.
[24] IPOS (2020), IOPS COUNTRY PROFILE: NAMIBIA, https://www.iopsweb.org/resources/41536875.pdf.
[8] Kentor, J. and T. Boswell (2003), “Foreign Capital Dependence and Development: a New Direction”, American Sociology Review, https://doi.org/10.1177/000312240306800206.
[27] NBFIRA (2023), PENSION FUND INVESTMENT RULES, 2023, https://www.nbfira.org.bw/wp-content/uploads/2025/01/Pension-Fund-Investment-Rules-2023-PFR-2.pdf.
[29] NPRA (n.d.), GUIDELINES ON INVESTMENT OF PENSION SCHEME FUNDS, https://npra.gov.gh/assets/documents/GUIDELINES-ON-INVESTMENT-OF-SCHEME-FUNDS.pdf.
[2] OECD (2025), Global Debt Report 2025: Financing Growth in a Challenging Debt Market Environment, OECD Publishing, Paris, https://doi.org/10.1787/8ee42b13-en.
[33] OHADA (2015), Insolvency law, https://www.ohada.org/en/insolvency-law/.
[40] Oluoch, W. and K. Ojah (2023), “A survey of the Microstructure of Corporate Bond Markets in Africa”, Social Science Research Network, https://pedl.cepr.org/sites/default/files/WP%205415%20OluochOjah%20SurveyMicrostructureCorporateBondMarketsAfrica.pdf.
[48] Oxford Business Group (2022), African Stock Exchanges: Focus Report, https://african-exchanges.org/sites/default/files/2024-07/ASEA_Africa_Focus_Report_.pdf.
[12] PAPSS (2025), PAPSS and Interstellar unveil African Currency Marketplace eliminating $5 Billion trade bottleneck, https://papss.com/media/papss-and-interstellar-unveil-african-currency-marketplace-eliminating-5-billion-trade-bottleneck/.
[11] PAPSS (n.d.), About us, https://papss.com/about-us/.
[30] Reuters (2015), Kenya’s Chase Bank raises 4.8 blm shillings as bond draws strong demand, https://www.reuters.com/article/kenya-corporatebonds/kenyas-chase-bank-raises-4-8-bln-shillings-as-bond-draws-strong-demand-idUSL5N0YW10W20150610/.
[46] South African Institute of International Affairs (2019), Bridging the Divide: Integrating SADC’s capital markets, https://saiia.org.za/wp-content/uploads/2019/05/Occasional-Paper-295_Bridging-the-Divide-Integrating-SADCs-capital-markets.pdf.
[26] South African Reserve Bank (2022), Exchange Control Circular No. 4/2022.
[19] TCX (2024), TCX Impact Report 2024, https://www.tcxfund.com/wp-content/uploads/2025/06/tcx-impact-report-2024-1.pdf.
[18] TCX (2018), Championing sustainable and innovative finance for development, https://www.tcxfund.com/wp-content/uploads/2018/11/TCX-Theory-of-Change.pdf.
[17] TCX (n.d.), About the fund, https://www.tcxfund.com/about-the-fund/.
[43] WACMIC (n.d.), About us, https://wacmic.com/about-us.
[28] World Bank (2023), Republic of Botswana - Financial sector assessment, https://documents1.worldbank.org/curated/en/099120523162012347/pdf/BOSIB085cdbd880a608a0009dfae732ce9d.pdf.
[6] WSJ (2019), Blackstone Retreats From Africa Investment Plan, https://www.wsj.com/articles/blackstone-retreats-from-africa-investment-plan-11549370983.
[5] WSJ (2017), Out of Africa: KKR Disbands African Private-Equity Team, https://www.wsj.com/articles/out-of-africa-kkr-disbands-african-private-equity-team-1511519279?mod=article_inline.
Corporate bond analyses are based on a dataset built by the OECD using deal-level information obtained from LSEG on corporate bond issues that are underwritten by an investment bank. The database provides detailed information for each bond starting in 1980, including e.g. the identity, nationality and sector of the issuer, the type, interest rate structure, maturity date and rating category of the bond, as well as the amount of proceeds obtained from the issue and intended uses thereof.
Convertible bonds, deals that were registered but not consummated, preferred shares, sukuk bonds, bonds with an original maturity less than or equal to one year or with an issue size of less than USD 1 million are excluded from the dataset. Industry classifications are based on The Reference Data Business Classification (TRBC) from LSEG. Annual issuance amounts initially collected in USD were adjusted by 2024 US Consumer Price Index (CPI).
Given that a significant portion of bonds are issued internationally, it is not possible to systematically assign issues to a certain country of issue. For this reason, the country breakdown is carried out based on the issuer’s country of domicile. The advanced/emerging market categories are based on IMF classifications.
Rating data
Credit rating analyses are based on OECD calculations using data obtained from LSEG. The calculations consider ratings from three leading agencies: S&P, Moody’s and Fitch. For each bond with an available rating in the dataset, the alphanumeric rating is transformed into 21-point numeric scale with 1 being the lowest rating (C) and 21 the highest (AAA for S&P and Fitch and Aaa for Moody’s). There are eleven non‑investment grade categories: five within C (C to CCC+) and six within B (B- to BB+); there are ten investment grade categories: three within B (BBB- to BBB+); and seven within A (A- to AAA).
For bonds with multiple ratings, the average of the available ratings is used. Some bonds do not have rating information available; these are assigned the average rating of all bonds issued by the same company in the same year (t). If the issuer has no rated bonds in year t, year t-1 and year t-2 are also considered, respectively. This procedure increases the number of rated bonds in the dataset and hence improves the representativeness of the analyses. When differentiating between investment and non-investment grade bonds, the final rating is rounded to the closest integer and bonds with a rounded rating less than or equal to 11 are classified as non‑investment grade.
Early redemption data
Bonds that are no longer outstanding due to having been redeemed before their maturity date are deducted in the annual outstanding corporate bond debt calculations. The early redemption data are obtained from LSEG and cover bonds that have been redeemed early due to being repaid via final default distribution, called, liquidated, put or repurchased. The early redemption data are merged with the primary corporate bond market data via International Securities Identification Numbers (ISINs).
The syndicated loan analyses are based on OECD calculations using deal-level data from LSEG. This database provides detailed information on each loan, including the borrower’s identity, nationality and sector, as well as the interest rate structure, maturity date and loan amount. The loan credit rating category is defined based on the following criteria:
Investment grade: Initial pricing up to 299 basis points above the base rate
Leveraged: Initial pricing between 300 and 399 basis points above the base rate
Highly leveraged: Initial pricing 400 basis points or more above the base rate
Only loans classified as "syndicated" or "club syndicate" are included in the analysis. Deals with maturities of less than 90 days are excluded. Annual data are based on the closing date, which is when the syndication on all levels/tiers has been signed and completed. Industry-level analyses follow LSEG’s The Reference Data Business Classification (TRBC), while country breakdowns are based on the borrower’s domicile. To account for inflation, issuance amounts originally recorded in USD were adjusted using the 2024 US Consumer Price Index (CPI).
← 1. Cabo Verde, Comoros, Djibouti, Eritrea, Eswatini, Lesotho, Morocco and Namibia.
← 2. Member countries: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
← 3. Member countries: Cameroon, Central African Republic, Chad, Equatorial Guinea, Gabon and Republic of the Congo.