12 °c
London
Tuesday, May 30, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Experts warn of Africa’s new debt crisis

FurtherAfrica by FurtherAfrica
January 17, 2018
in Africa, Aid, Banking, Donors, Economy, Finance, Kenya, Mozambique, Tanzania, Uganda
Reading Time: 2 mins read
1.9k 19
1
All dollar bond countries in Africa now rated junk
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Concern is growing that 2018 could be the year that sub-Saharan Africa sees a new debt crisis, nearly 20 years since the last one was said to have been resolved.

The reason why African debts has risen is simple. Since the world financial crisis of 2008, there has been a boom in lending to low- and lower-middle-income country governments which more than quadrupled from $57 billion in 2007 to $260 billion by 2016.

This increase came about because quantitative easing and low interest rates in the western world mean that lenders have wanted to give more loans to developing countries where they can charge higher interest rates.

Now, however, global interest rates are rising and poorer countries are finding it tough to pay back money borrowed from banks in anticipation of a commodity windfall that never materialised.

The result, a massive upswing in the level of debt owed by African governments. In East Africa, Kenya’s debt burden as percentage of GDP is 32 per cent, Uganda’s 57 and Tanzania 63 per cent.

But the east African country most affected is Mozambique on 299 per cent of GDP. Of debts owed by low and lower middle income governments, 38 per cent are owed to private lenders, 36 per cent are owed to multilateral institutions, primarily the World Bank, IMF and regional development banks such as the African Development Bank, and 26 per cent are owed to other governments

Research by the UK-based Jubilee Debt Campaign last year showed that debt payments by porrer countries had increased by 50 per cent in two years, and had reached their highest level since 2005.

The debt crisis of the 1980s, 1990s and early 2000s was triggered by a fall in the price of commodities and rise in US interest rates.

History seems to be repeating itself as since 2014 the IMF’s commodity price index has fallen by more than 40 per cent, and the US dollar has risen in value by 15 per cent.

Source: Daily Nation

Related

Tags: debtFeatureIMFInternational Monetary FundJubilee Debt CampaignKenyaMozambiquesovereign debtTanzaniaUgandaWorld Bankウガンダケニアタンザニアモザンビーク乌干达坦桑尼亚肯尼亚莫桑比克
ScanSendShare752Tweet470Share132Pin169Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

TECH – Coding Algorithms in MT4: Understanding MQL 4
Tech

TECH – Coding Algorithms in MT4: Understanding MQL 4

by FurtherAfrica
May 29, 2023
BP production in Angola is in decline since 2017
Energy

New oil companies entering Angola’s oil market

by FurtherAfrica
May 29, 2023
Agriculture

Mozambique is among the world’s largest tobacco producers

by 360 Mozambique
May 29, 2023
Business

Emirates Etisalat keen to enter Ethiopian market

by FurtherAfrica
May 29, 2023
Three unmissable experiences in Namibia for your bucket list
Travel

Tourism recovers in Nambia ahead of peak season

by FurtherAfrica
May 29, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

TECH – Coding Algorithms in MT4: Understanding MQL 4
Tech

TECH – Coding Algorithms in MT4: Understanding MQL 4

by FurtherAfrica
May 29, 2023
0

In the world of automated trading, MetaQuotes Language 4 (MQL 4) is a widely used programming language for developing algorithmic...

Read more
BP production in Angola is in decline since 2017

New oil companies entering Angola’s oil market

May 29, 2023

Mozambique is among the world’s largest tobacco producers

May 29, 2023

Emirates Etisalat keen to enter Ethiopian market

May 29, 2023
Three unmissable experiences in Namibia for your bucket list

Tourism recovers in Nambia ahead of peak season

May 29, 2023

FurtherAfrica Partners Network

The Exchange Farmers Review Africa 360 Mozambique
TechGist Africa Energy Capital & Power Club of Mozambique
Taarifa Rwanda Web3Africa See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa  

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 107,187 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?