Will domestic cross-listing of Africa’s Eurobonds address funding challenges?

Eurobonds have been a financial instrument of choice for African governments that seek to borrow from international capital markets. By 2021, twenty-one African governments had issued a combined total of US$150 billion for infrastructure, technology, and skills development. As concerns about the long-term sustainability of Eurobond borrowing continue to rise, governments are now exploring alternatives to raise financing. Domestic cross-listing – also known as secondary listing – of Eurobonds is such option that a few governments have considered. This is not a new phenomenon as public and private institutions have, for decades, been cross-listing on the stock exchange platforms, which is viewed by investors as a significant milestone in the journey of institutional growth and development. There are questions on whether this will significantly contribute to solving African’s funding challenges.