Determinants of Sovereign Spreads in Angola

This paper aims to analyze the determinants of sovereign spreads for Angola and investigate the potential bias against the country. Identifying determinants and the magnitudes of contributions of each determinant could shed light on the policy and reform efforts to reduce borrowing costs and enhance foreign exchange liquidity management. This literature has also attempted to assess whether SSA countries face a higher risk premium compared to other countries. It found evidence that an SSA premium may exist and it may be driven by often omitted factors associated with fiscal transparency and financial sector development. This report updates Rwanda’s 2019 Fiscal Transparency Evaluation. Rwanda has advanced fiscal transparency notably since 2019, especially in fiscal risk analysis and management, supported by the 2022 Organic Law for Public Financial Management and accrual accounting transition.