The Economist Intelligence Unit (EIU) forecasts a surge in Eurobond issuance across West Africa in 2025, driven by lower borrowing costs and easing financial conditions. According to its Financial Services Outlook 2025, “The Great Easing,” falling interest rates will rejuvenate fixed-income markets, attracting investors to high-quality bonds, including investment-grade corporate securities and sovereign debt from emerging markets. The report highlights that rate cuts will reverse recent outflows from these markets, fostering renewed capital inflows. West Africa, already experiencing an uptick in issuance during early 2024, is expected to benefit significantly from this trend.
EIU’s report also emphasizes global financial innovations, projecting digital wallets as the fastest-growing payment method and the continued decline of cash transactions. Additionally, climate finance is set to gain momentum, with regulators and institutions like the World Bank and the European Central Bank enhancing their environmental targets. Large economies such as India will implement stricter climate risk disclosure frameworks, signaling a global shift toward sustainable finance.
Nigeria, after a two-year break, re-entered the Eurobond market in late 2024, successfully raising $2.2 billion to fund its 2024 budget. Officials hailed the achievement as a sign of growing investor confidence in the country’s economic reforms. Other African nations, including Ivory Coast, Kenya, and Senegal, have also tapped into the international debt market with oversubscribed offerings, indicating strong investor appetite for frontier market debt. As the global financial landscape evolves, West Africa is poised to play a key role in shaping emerging market trends.