Of the 38 countries covered by the Joint Low Income Country Debt Sustainability Framework (LIC DSF) of the International Monetary Fund (IMF) and the World Bank, 8 African countries are already in debt distress and another 13 are in debt distress due to over-indebtedness. This is learned from a report published last week by the United Nations Conference on Trade and Development (Unctad).
Entitled “Trade and development report update”, the text is based on an analysis of the debt sustainability of low-income countries as of 28 February 2023. The 8 countries in debt difficulty are the Republic of Congo, Malawi, Mozambique, Sao Tome and Principe , Somalia, Sudan, Zambia and Zimbabwe while the 13 countries at high risk of over-indebtedness are Burundi, Cameroon, Central African Republic, Chad, Comoros, Djibouti, Ethiopia, Gambia, Ghana, Guinea-Bissau, Kenya, Sierra Leone and South Sudan.
The report also points out that many African countries are currently approaching important and risky maturities: the majority of Eurobonds issued in the previous decade will mature in the coming years and redemptions are expected to peak in 2024 and remain elevated for the next decade, at a time in which most of the countries of the continent are unable to draw on international markets to refinance their debts.
Unctad also estimates that Africa is expected to register an average growth of 2.5% in 2023, a decreasing rate compared to that of 2022 and which remains insufficient to reduce poverty levels. This expected slowdown in economic growth will mainly result from weaker external demand and tighter financial conditions. [Da Redazione InfoAfrica]
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Read our Zoom on the debt burden in Africa: https://www.africaeaffari.it/rivista/quale-tunisia