economics-africa3.845 min read "Africa's Debt Spiral: Struggling with Prolonged Restructuring Efforts"
Sub-Saharan Africa is facing its worst-ever debt crisis, with several countries already in default and 22 countries at heightened risk of over-indebtedness. The rise in interest rates and over-indebtedness is hindering countries' ability to finance their development, exacerbated by the fall in commodity prices and the Covid pandemic. Efforts to restructure debt for 40 African countries have been challenging, with private lenders often balking at the terms. The debt spiral is preventing investment in vital infrastructure, health systems, and education, leading to dangerous currency fluctuations and increasing inflation, impacting the daily lives of poor people. While debt restructuring is important, it should not come at the expense of investments in infrastructure, health, and energy to support economic and societal development.
2 years ago•Source: The East African
