How Does Geopolitical Risk Affect Sovereign Financing? Some Results from a Recent IMF Working Paper Using Our ICRG Risk Data

Have a look at this really interesting and compressive piece just released under the IMF’s Working Paper series that looks at the landscape of sovereign financing in sub-Saharan Africa (SSA), notably the main drivers of yields. The “African risk premium” is isolated, which reflects global factors such as the US dollar and interest rates, along with domestic characteristics, including governance and political risk.

Our ICRG risk data are used to assess political risk, and a few recommendations are issued to enhance credit ratings and improve the landscape for FDI. (https://www.imf.org/en/Publications/WP/Issues/2025/07/04/Navigating-the-Evolving-Landscape-of-External-Financing-in-Sub-Saharan-Africa-568248)

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