Many African nations are not borrowing as much as those in developed markets, but are charged at much higher rates for debt due to demand for higher risk premiums from international investors.

Kojo Annan, director of London- and Accra-based family office Vector Global, said the coronavirus crisis provides opportunity for Africa to undergo a “complete reset,” and develop its capital markets internally, rather than relying on historic intercontinental trade and financing agreements.

Former Renaissance Capital Chairman Christophe Charlier said a “laziness premium” was applied, as investors prefer to devote research time to frequent issuers and develop a herd mentality toward known quantities.