Africa borrowed like it’s 1999 and now it’s paying the price
Government debt in Sub-Saharan Africa has doubled in the past decade, says the IMF, but the continent isn’t in a debt crisis yet
Abuja — Record commodity prices and low global interest rates have encouraged African countries to borrow like they did in the 1990s, but now some are struggling to pay up as their revenue slows along with economic growth.
Government debt as a percentage of GDP in Sub-Saharan Africa has doubled in the past decade, heading back towards the level it reached in 2000. International Monetary Fund (IMF) MD Kristalina Georgieva said in November this is a cause for concern. Of the 54 countries on the continent, 20 are near or at distressed levels, according to the IMF, which means they face difficulties honouring their obligations...