Citigroup's sub‑Saharan Africa head Akin Dawodu told reporters at the Africa CEO Forum in Kigali that African sovereigns are abandoning straight‑dollar borrowing. With global rates high and local currencies weakening, issuers are courting lower‑yielding money markets, from the Swiss franc to the euro, to trim interest costs. Such moves aim to lower borrowing costs and debt‑service burdens for nations under fiscal strain.

Nigeria disclosed a plan to tap the United Arab Emirates for $5 billion of financing, while Angola and Senegal have already issued swap‑linked bonds. Kenya is structuring a $1 billion debt‑for‑food swap and targeting a $350 million Samurai bond by June. South Africa’s central bank signaled openness to euro‑liquidity lines, and Egypt continues to diversify with yuan‑denominated debt to broaden its external funding base.

The shift toward multi‑currency issuance reflects Africa’s quest for cheaper capital, but it also introduces foreign‑exchange risk for governments with thin reserves. The IMF warns that many frontier states lack hedging tools, raising the specter of refinancing stress if global liquidity tightens. Investors should weigh the yield benefit against the volatility of non‑dollar exposure in upcoming funding cycles for sovereigns.