Have African sovereign debts become unsustainable? – Young Africa

2023-09-18 10:04:07

According to the latest annual report of the World Bank, the public debt of sub-Saharan African countries stood at $1.14 trillion at the end of 2022. This Who corresponds to an increase of more than 200% compared to 2010. The average proportion of this debt in relation to GDP increased from 32% in 2010 to 57% in 2022.

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The increase in interest rates makes the situation all the more delicate as international aid dries up. The debt is today principal financing tool for countries on the continent but not the only one.

What are sovereign debts used for?

Sovereign debt, also called public debt, covers all loans contracted by a State. These can be used to finance infrastructure, support the economy during downturns, refinance old debts or stimulate economic activity and improve the

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