A ray of growth and economic outshine is expected as sub-saharan africa’s growth is accelerating with two of its biggest economies leading the way. Ivory Coast, one of the largest producers of cocoa is projected to have 6.6% growth, having surpassed south africa as the highest rated sovereign in sub-saharan africa with foreign debt outstanding. Having said that, it is also anticipated that Tanzania will also beat 6%, according to the IMF. Africa’s economic growth prospects are brightening with Ethiopia now accounting for almost a 10th of GDP. 

Economic recovery is predicted to continue beyond this year, with growth projected to 4.0 in 2025. The region’s two year pause from international capital markets came to an end with Ivory Coast’s successful eurobond issuance in January 2024. Additionally, inflation has dropped to almost half resulting in public debts having been broadly stabilized. The yield on Ivory Coast’s debt maturing in 2028 decreased by 13 basis points to 7.09% on Monday, reaching its lowest level since April 15. Meanwhile, South Africa’s dollar debt due in 2030 saw its yeild drop to 6.9%, down from over 8.5% in October.

Despite a significant reduction in cocoa production in the country, the Ivorian economy remains as one of the region’s fastest blooming with an expected rise in the commodity exports over the next two years. With major catastrophic harvests, resulting in record- high cocoa prices, the ivory government was able to secure a funding agreement of $4.8 billion with the IMF. In January, Ivory Coast broke sub- saharan Africa’s two year lockout from international capital markets by selling $2.6 billion in eurobonds.

However, with a strong track record in the global financial market it is further prescribed for a fiscal consolidation inorder to stabilize the debt levels. An elevation towards a more positive number for Ivory Coast’s economy is expected mainly due to the contribution of an increased commodity exports. 

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