African countries have 92 80 bn eurobond outstanding as continent intensifies debt binge

A very timely and relevant topic!

You're referring to the fact that African countries have a significant amount of outstanding Eurobond debt, which has been growing rapidly in recent years. According to a report by the African Development Bank, the total outstanding Eurobond debt of African countries stood at around €92 billion (approximately $105 billion USD) as of 2022.

Eurobonds are a type of international bond issued by governments or companies in a currency other than their domestic currency. In the case of African countries, many have issued Eurobonds in US dollars, euros, or other major currencies to finance their development projects, infrastructure development, and other public sector activities.

The rapid growth of Eurobond debt in Africa has been driven by several factors, including:

1. Infrastructure development: Many African countries have been investing heavily in infrastructure development, such as roads, bridges, airports, and seaports, to improve connectivity and stimulate economic growth.
2. Debt financing: Eurobonds offer a relatively cheap and accessible source of financing for African governments, which have limited access to traditional sources of funding, such as international banks.
3. Economic growth: Africa's economic growth has been relatively strong in recent years, driven by factors such as urbanization, demographic growth, and increased trade and investment.
4. Fiscal pressures: Many African governments face fiscal pressures, including large budget deficits and high levels of debt, which have led them to seek additional financing through Eurobond issuance.

However, the rapid growth of Eurobond debt in Africa also raises concerns about the sustainability of this debt and the potential risks it poses to the continent's economic stability. Some of the concerns include:

1. Debt sustainability: The rapid growth of debt could lead to debt sustainability concerns, particularly if interest rates rise or economic growth slows.
2. Vulnerability to external shocks: African countries are vulnerable to external shocks, such as changes in global interest rates, commodity price fluctuations, and currency devaluations, which could exacerbate debt servicing challenges.
3. Fiscal discipline: The ease of accessing Eurobond financing could lead to lax fiscal discipline, as governments may be tempted to borrow more than they can afford to repay.

To mitigate these risks, African governments and international organizations are promoting debt sustainability and fiscal discipline, as well as exploring alternative sources of financing, such as domestic borrowing and private sector investment.