Yemisi Izuora
African companies are regaining the attention of international investors. During the first nine months of 2026, they raised $13.3 billion through foreign-currency bond issues, including $3.25 billion in private placements. According to a Bank of America (BofA) note published on Monday, October 19, this represents the strongest issuance pace in five years, behind the $17 billion raised over the whole of 2021.
The return to international markets has also brought greater issuer diversity. Eleven African countries are represented in 2026, compared with eight in 2021. Companies tapping investors include mining group First Quantum Minerals, which operates in Zambia, Angolan energy group Azule Energy and South African petrochemical company Sasol, Ecofin Agency reports.
In January, Azule Energy, a joint venture between BP and Eni, raised $1.5 billion through two bonds carrying coupons of 8.25% and 8.625%. In April, Sasol issued $750 million in bonds maturing in 2033, with an 8.75% coupon. Its order book reached $2.8 billion, nearly four times the amount sought.
Improving Credit Profiles
Beyond issuance volumes, Bank of America reports an improvement in the credit quality of African companies. Rating upgrades now outnumber downgrades, and the segment under review has recorded no payment defaults since 2020. The outstanding amount of the lowest-rated bonds, those rated CCC, has fallen from $3.2 billion five years ago to $2.1 billion today.
This trend could support further issuance. Kay Hope, BofA’s managing director of global research, expects annual issuance to range between $8 billion and $12 billion over the coming years. Narrower risk premiums should particularly encourage regular issuers to return to the market.
However, renewed activity does not mean financing has become cheap. High interest rates could lead some companies to favour bank loans, domestic markets or investors in the Gulf.
More importantly, the debt repayment schedule is becoming increasingly demanding. Following $300 million in maturities for United Bank for Africa in November 2026, repayments will rise to $2.2 billion in 2027 and nearly $7 billion in 2028. The latter year will include major maturities for Eskom ($1.5 billion), Tullow Oil ($1.2 billion) and Transnet ($1 billion).
Sovereign risk also remains a concern. Governments’ financial difficulties can weigh on corporate credit ratings and financing conditions, even when companies have sound fundamentals, according to the analysis.
For African issuers, the challenge will be to turn the current investor appetite into sustained access to capital beyond the present favourable window.