Browsing: Simon Mizrahi

Warning bells are being ignored over Africa’s rising debt making it not if but when Africa crumbles under the pressure to repay these loans.

Public debt in nearly half the sub-Saharan African countries is now above 50 per cent of Gross Domestic Product (GDP).

Concerns regarding the continent’s present debt arise from the fact that it has risen sharply in a very short space of time.

However, Africa’s public debt has not yet reached the proportions that triggered the Highly Indebted Poor Country (HIPC) initiative.

Sub-Saharan Africa’s new debt crisis

The African Economic Research Consortium (AERC) warns that heavy debt servicing has increased apprehensions regarding sustainability.

Debt management by servicing the loans carries immediate implications for macroeconomic stability, consequently economic growth and development.

AERC adds that Sub-Saharan Africa is slipping into a new debt crisis. 40 per cent of the region’s countries is now at high risk of debt distress. …