Global Selloff Raises Yields on African Eurobonds, Increasing Borrowing Costs

• Fears of a US recession trigger a global selloff, raising yields on African Eurobonds
• Higher yields reflect increased borrowing costs for African countries, exacerbating economic challenges

Lagos, Nigeria – Fears of an impending US recession have triggered a global selloff of financial instruments, causing a surge in yields on African Eurobonds and consequently hiking borrowing costs for the continent’s nations. Over the past two days, the prices of Eurobonds issued by African countries have plummeted, with yields rising sharply as investors seek higher compensation for the perceived increased risk.