Browsing: rising debt levels in Africa

• The World Bank reports that, as of 2022, low- and middle-income nations paid a record US$443.5 billion of their external public and publicly insured debt.
• Over the past decade, the increasing debt stock of these countries has outpaced economic growth, raising concerns about these economies’ ability to service their external obligations.
• The lender anticipates that over the course of 2023–2024, the cost of servicing rising debt will increase by roughly 10% for all developing nations and by 40% for low-income ones.

The World Bank has issued a warning that developing nations’ rising debt obligations are placing a strain on their budgets by taking money away from vital services such as health and education.

Latest statistics from the World Bank’s 2023 International Debt report show that low- and middle-income nations (LMICs), including Kenya, paid a record US$443.5 billion in external public and publicly insured debt.

“Over the past decade, the rise …