tough nut

Côte d’Ivoire, Ghana, Nigeria…Does West Africa have a debt problem?

By Nicholas Norbrook

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Posted on January 23, 2023 12:09

© The Vice President of Nigeria Yemi Osinbajo (L), President of Ghana Nana Akufo-Addo (C), and President of Côte d’Ivoire Alassane Ouattara (R) attend the opening ceremony of the Africa CEO Forum in Abidjan on June 13, 2022. (Photo by Issouf SANOGO / AFP) — The Vice President of Nigeria Yemi Osinbajo (L), President of Ghana Nana Akufo-Addo (C), and President of Côte d’Ivoire Alassane Ouattara (R) attend the opening ceremony of the Africa CEO Forum in Abidjan on June 13, 2022. (Photo by Issouf SANOGO / AFP)

Many West African countries were already over-extended when 2020 began. Nigeria, Ghana, Côte d’Ivoire, and Senegal were the West African heavyweights that had a debt-to-GDP ratio of more than 100% between 2015 and 2020. Covid-19 and the ensuing low tide revealed which countries had been swimming without a costume.

A strengthening US dollar has complicated matters – making repayments on dollar-denominated foreign debt more expensive in local currency – coupled with biting inflation aggravated by the war in Ukraine.

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