Slow Boil

Africa sovereigns left exposed to ‘looming debt crisis’: AfDB

By David Whitehouse

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Posted on January 20, 2023 05:00

© US Federal Reserve interest rate increases are making it more expensive for African sovereigns to borrow. REUTERS — US Federal Reserve interest rate increases are making it more expensive for African sovereigns to borrow. REUTERS

Higher global interest rates as developed countries try to combat inflation leave African sovereigns exposed to debt distress, the African Development Bank (AfDB) says in a new report.

“Debt vulnerabilities remain elevated” in Africa due to tighter global monetary conditions and the higher dollar, AfDB chief economist Kevin Chika Urama said at a briefing to launch the report. Africa’s Macroeconomic Performance and Outlook (MEO) Report, 2023 is a new bi-annual publication which will appear in the first and third quarters each year.

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