Browsing: African debt crises

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Public funds are seldom enough to fund developmental projects which is why many Africa countries have turned to debt.  Albeit the challenge with accumulating mounds of debt is the equal mounds of repayment obligation with the added inconvenience of interest accrual. 

The fluctuations in commodity prices which African countries rely on have not helped the situation. Data from the IMF indicates that 20 of the 54 countries in Africa are already in or headed towards distress. 

With the rising number of countries going towards the red zone, it is certainly a nerve-wracking fact for Africa.

COVID-19’s Impact on African Debt 

The arrival of coronavirus on the continent caused much alarm; rightfully so, given the devastation on health and the economy around the wealth. The transmittal effect of world economic standstill, recession, and local lockdowns heavily damped economic activity. 

One of the major risk factors that the heavily indebted African countries