Browsing: Debt crisis in Africa

Debt crisis in Africa
  • There is a debt crisis in Africa as countries struggle to repay international loans. 
  • According to the World Bank, nine African countries entered 2024 in debt distress, with another 15 at high risk of distress and 14 more categorised as moderate risk.
  • According to the United Nations, Africa’s public debt will stay above pre-pandemic levels in 2024 and 2025.

At 4 per cent, Africa is projected to be the second fastest-growing economic region in the world in 2024,  according to a report by the International Monetary Fund (IMF). However, behind the headline figure is a less optimistic reality.

Many African countries have suffered from slow post-COVID-19 recovery, climate change shocks, worsening food security situation, political instability, weak global growth, and high-interest rates. These economic shocks have pushed over 55 million people into poverty since 2020. The situation is increasingly alarming as more than half of the continent’s countries are in …

money
For a while now countries all over the globe are still trying to recover from the impact that COVID-19 has left behind, some of which are managing to do so effectively while others are still struggling.  

There are still a number of countries around the globe that are still feeling the effects of the pandemic, one of which includes Zambia, an African country that took a massive hit from the outbreak and does not seem to be improving. Although the country is going through a rough time post COVID-19 right now, it was already struggling before due to its being in massive debt. Having borrowed $12bn from international creditors, it has now become the latest country to default on its debts, after talks with its creditors hit an impasse.  

Zambia, in the north of Southern Africa and home to about 18 million people, has built its development over an abundance