African dollar bonds extended a recovery on Thursday as investors bet some of the region’s borrowers will benefit from elevated oil and metal prices even as the war in the Middle East saps risk appetite.

A widening Middle-East conflict could prompt African nations to delay further interest rate cuts, as the threat of higher oil prices revives concerns about inflation and risks weakening local currencies.

Fitch Ratings warned of an “inherent risk” of default by Gabon amid mounting concern over whether the oil-producing nation will formally ask the International Monetary Fund for a loan program.

Eurobond issuance from sub-Saharan African countries is off to the strongest start to a year in more than a decade, as nations take advantage of lower borrowing costs and demand from investors diversifying out of US assets.

Kenya and Ivory Coast are the latest African nations to return to the international bond market, seeking to take advantage of lower borrowing costs and a risk-on sentiment to raise funds.

Concerns over technology profits took hold of global markets again on Thursday, putting a damper on the rally in emerging assets.

Concerns over technology profits took hold of global markets again on Thursday, putting a damper on the rally in emerging assets.

Foreigners have piled into Zambia’s local bond market following the government’s move to lift a cap on non-resident participation in debt auctions, as money shifts from dollar-denominated assets into higher-yielding investments.

The global copper price retreat has led Citigroup Inc. to close its position on Zambia’s kwacha currency for now.

Emerging-market currencies and stocks clocked in a fifth session of gains after the Federal Reserve fulfilled market expectations by keeping interest rates steady on Wednesday.

Angola is weighing plans to issue a $1.7 billion bond on international capital markets this year, joining a list of prospective issuers across the continent from Kenya to the Democratic Republic of Congo.

Emerging-market currencies and stocks clocked in a fifth session of gains after the Federal Reserve fulfilled market expectations by keeping interest rates steady on Wednesday.

Senegal has been left as the only African nation with a sovereign risk premium in distressed territory after yields on the debt of Mozambique and Gabon narrowed relative to US Treasuries.

The Democratic Republic of Congo is preparing to raise $750 million in April with its first international bond sale, and will use the proceeds to fund infrastructure projects.

Ninety One Plc sees Africa’s broad bond market, a corner of emerging markets once shunned because of its economic risks, as an opportunity for investors looking for bigger returns.

Emerging-market stocks were little changed as ambitious spending plans by Taiwan Semiconductor Manufacturing Co, the world’s largest chip-maker, lifted sentiment for AI-linked shares across the world.

Africa’s top oil producers led a bond rally across emerging markets as the price of brent crude rose, fueled by the US escalating pressure against Iran.

A rally in Africa’s dollar bonds is stumbling as long-term US plans to boost crude from Venezuela dim the appeal of debt from oil exporters on the continent.

African credit markets may disappoint investors hoping for a repeat of last year’s stellar returns, according to hedge fund Enko Capital Management LLP, which is seeking out trades to cushion against setbacks in the continent’s top performing assets.

Zambia’s kwacha faces risks in the coming weeks that may snap a year-end rally that has extended into 2026 and made it the world’s best-performing currency.