Kamala Harris’ ascension to the top of the Democratic Party ticket in the US has had unintended consequences for African governments seeking money to fill holes in their budgets. Renewed uncertainty around the outcome of the American presidential election is making African treasury departments rethink plans to sell sovereign debt. Expectations that Donald Trump would beat Joe Biden had nations rushing to the market before he returned to the White House. Already, the cost of foreign bonds remains high because the US is clinging to higher interest rates, so fresh issuance has largely been borne out of necessity, not want. Cameroon was the most recent seller this week — and may be the last for the year. The nation opted for a private placement of $550 million at a yield of more than 10%. A bond offering double-digit yields is usually a no-go, but the central African cocoa producer needed the money.
