The report, analysed by Reuters says Egypt, South Africa and Morocco are projected to be the largest issuers, reflecting both the scale of their economies and their deep access to international financial markets.
South Africa’s borrowing is driven by the need to refinance prior debt and fund budgeted fiscal programs, while Egypt continues to finance infrastructure and stabilize its public finances.
Leading borrowers and the regional context
The prominence of these nations reflects their size, creditworthiness, and investor confidence.
Access to favorable external financing costs, currently at multi-year lows, allows governments to refinance foreign-currency maturities at cheaper rates.
S&P cautions that geopolitical risks, including the fallout from the Iran war, could disrupt borrowing plans or increase costs by affecting hydrocarbon shipping routes like the Strait of Hormuz.
While financing conditions remain relatively benign, analysts note that rising debt levels, combined with exposure to global shocks, require careful fiscal management.
African governments are balancing the need for commercial borrowing to sustain growth with the imperative of maintaining debt sustainability amid uncertain international conditions.
