Many Sub-Saharan countries, aside from South Africa, have sold nearly US$7 billion in debt for the year. This is more than what the region has done for the past five years combined. When before the violence and the corruption turned off investors, now the yields are more than double the Treasuries have forecasted.
The International Monetary Fund have forecasted growth in Africa would be second only to Asia's pace in 2013. Eight Sub-Saharan countries from Nigeria to Kenya have sold or are undertaking plans to offer bonds overseas in record amounts. The yields on African debt declined by 88 basis points in the past 12 months to 4.35%. These are higher than the 1.74% for 10 year Treasury bonds according to figures obtained by JPMorgan Chase.
According to Jim O'Neill, the chairman of Goldman Sachs Asset Management says Africa is 'a hugely exciting story.' He added, "The only one thing one has to be a little bit careful of are many of those markets are still very undeveloped and suddenly there's a lot of people around the world regarding Africa to be sort of fashionable and trendy."
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