Ivory Coast overtakes SA to become best-rated in sub-Saharan Africa

BREAKING NEWSMay 20, 2024 at 4:25 PM UTC

TLDR

Ivory Coast surpasses South Africa as top-rated sovereign in sub-Saharan Africa for foreign debt, with a positive outlook.
Positive shift due to Ivory Coast's improving debt profile and recent issuance of $2.6 billion in Eurobonds in January.
Ivory Coast's fiscal strength highlighted by return to international capital markets after almost two years.

Ivory Coast has risen to the top spot as the highest-rated sovereign in sub-Saharan Africa for foreign debt, surpassing South Africa, according to S&P Global Ratings.

Both countries maintained their BB- ratings, but Ivory Coast's outlook shifted to positive due to its improving debt profile, contrasting with South Africa's stable outlook.

This development underscores Ivory Coast's growing fiscal strength, propelled by its recent issuance of $2.6 billion in Eurobonds in January. This not only bolstered the country's finances but also marked sub-Saharan Africa's return to the international capital markets after nearly two years.

Key Takeaways

Ivory Coast's economy continues to outpace its regional counterparts, with the International Monetary Fund (IMF) projecting a robust growth rate of 6.5% for 2024, up from 6.2% in the previous year. Despite a notable decline of about a third in cocoa production during the 2023-24 season, the Ivorian government has taken proactive measures to fortify its financial position. In a strategic move to bolster its reserves and financial stability, Ivory Coast secured a significant funding agreement worth $4.8 billion with a prominent Washington-based lender. This infusion of capital has provided a crucial buffer, enabling the country to navigate challenges stemming from fluctuations in cocoa production and external economic pressures.

Ivory Coast

S&P Global Ratings

Eurobonds

Fiscal Policy

Credit Rating

Sovereign Credit

South Africa