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Foreign debt sustainability and human development in Sub Saharan Africa

Despite the debt relief initiatives at the turn of the century, the external debt of Africa is rising again with some new worrying features: diminishing concessionality, growing private component and a strong presence of opaque Chinese loans. Sub-Saharan countries devote a relevant portion of their fiscal resources to service the debt, this prevents them from increasing development expenditures. The 2020 Debt Service Suspension Initiative, DSSI, by the G20 recognizes these difficulties but it falls shorts from providing long term solutions. We evaluate external debt sustainability in four SSA countries: Cote D’Ivoire, Ethiopia, Ghana, and Kenya plus a composite country called Wakanda, representative of the whole region.