Challenges continued Debts Africa 2024 with prices arriving Interest Global to 40-year highs, many maturing Bonds The debt issued by these countries.
According to the group World BankAfrica will pay $163 billion in debt service alone in 2024, a sharp increase from $61 billion in 2010.
undermining development
According to a new research paper by the Abu Dhabi-based Interregional Centre for Strategic Analysis, the increasing burden of service Debts Africa will undermine the continent’s sustainable development goals, especially in the areas of health, education and infrastructure.
The center said: A new report issued by the program showed that United Nations that Public debt Growing strangles countries Africa Sub-Saharan Africa, noting that debt service represents 50 percent of government revenues in Angola, Kenya, Malawi, Rwanda, Uganda and Zambia.
According to “UnctadThe debt growth rate in developing countries is twice the global rate. For example, African debt grew to more than 60 percent by 2024.
Restructuring
The African Development Bank says Africa needs urgent debt restructuring, more favorable lending terms and about $25 billion for the African Development Fund.
5 times
Interregional added that between 2000 and 2020, Africa’s external debt increased more than fivefold, representing nearly 65 percent of its GDP in 2022.
After nearly 3 years of “Covid-19”, the debt crisis in sub-Saharan Africa is still worsening and escalating, despite local and international efforts to confront the repercussions of global shocks, in light of the rising costs of debt interest, the increase in the cost of food and energy, and the decline in Currency.
“With rising public debt resulting from declining tax revenues and rising interest rates, development in sub-Saharan Africa is facing a major obstacle, as poor financial conditions limit governments’ ability to invest,” Interregional continued.
Negative indicators
Interregional pointed out that there are key indicators that clarify the current state of African debt, most notably: the continued rise in the average debt-to-GDP ratio.
According to the African Union, the average debt-to-GDP ratio is gross domestic product In Africa, it is expected to remain high at 65 percent through 2024, due to growing financing needs and higher debt servicing costs.
According to the International Monetary Fund, the ratio of debt interest payments to Government revenues In sub-Saharan Africa, the rate of malnutrition, which stands at about 10.5 percent, has doubled over the past decade, becoming about three times that of developed countries.
The credit rating agency expects Fitch The percentage is expected to reach 40 percent in Nigeria and 28 percent in Kenya, for example, by 2024.
liquidity drought
And according to International Monetary Fundthen Cash flow For most African economies, the global shocks of the past three years and government spending driven by more debt have dried up, leaving many African countries with a heavy debt load.
According to the World Bank, nine African countries are currently in debt distress, while about 15 others are at “high risk” of not being able to meet repayment requirements.
Some 19 African countries are expected to spend more than a fifth of their revenues in 2024 on external debt service.
Some African countries are likely to go into debt restructuring in 2024, as debt restructuring has become necessary to restore debt burdens to sustainable levels.
