African debt capital markets resilient in face of growth challenges

Zoya Sisulu, ‎Head of Debt Primary Markets, South Africa, Standard Bank. Credit: Business Day (South Africa)

Debt capital markets across Africa’s sub-regions have remained robust despite the macroeconomic and political challenges presented, “indicating their growing maturity and depth – along with their ability to develop solutions in the face of volatility and change,” says Zoya Sisulu, head, Debt Capital Markets South Africa, at Standard Bank.

Sisulu points to Kenya, as an example, where structural challenges, including two banks placed under statutory management in 2016, saw investors move out of corporate bonds to the perceived safety of government paper and tier one banks. “Similarly, in response to local growth concerns and increased political uncertainty in South Africa, issuance in the country’s debt capital markets was largely focused on high quality deals on well-known credit, given the increased risk aversion,” he says.

Read more: African debt capital markets resilient in face of growth challenges

Recommended