The 2008 economic crisis is the single largest factor that has driven developing countries to seek alternative sources of financing for social and developmental infrastructure. This was a result of the drying up of bilateral loans and grants from European and American countries.
Some African countries put forward the argument that the funds from capital markets, or sovereign bonds, are a cheaper source of alternative financing. A sovereign bond is a debt security issued by a national government known as a Eurobond. It is denominated in a foreign currency, usually the dollar, rather than what its name (euro) implies.
Seychelles holds the distinction of being the first Sub-Saharan African country to issue a sovereign bond—it issued a $30 million bond in 2006. This was followed by the Democratic Republic of Congo (DRC) issuing $454 million, Gabon $1 billion, and Ghana $750 million in 2007.
