Africa Debt Boom May Store Up Trouble For The Future

The National Heroes Stadium in Lusaka, Zambia. The country is in talks with China about renegotiating its bilateral debts. Image: Waldo Swiegers/Bloomberg News


Cheap borrowing has fueled bond issuance, but repayment deadlines in coming years are raising concerns

African countries have loaded up on dollar debt, leading some to worry that a tightening of global financial conditions could trigger borrowing problems in coming years.

In the decade through 2019, debt levels in sub-Saharan countries excluding South Africa have risen 23 percentage points to around 50% of gross domestic product, according to the Institute of International Finance, a banking industry research group. Much of that issuance has occurred in dollar- or euro-denominated bonds issued in the past three years.
Driving the issuance: copious demand from international investors for higher-yielding debt, combined with a slide in local currencies and commodity prices that has crimped government revenues.

The oil…

50 Years After Biafra: No Longer A United People

Archbishop Kaigama On Christians And Muslims in Nigeria

50th Anniversary Of Nigeria’s Euphoria

Nigeria Is Ripe For Referendum Democracy

NIGERIA: Boko Haram's Blood Lust

50 Years After Civil War: Dissecting Nigeria’s Quest For Unity

Pentagon Says 34 Troops Suffered Brain Injury In Iran Strike

Dems Say Oust Trump Or He'll Do It Again; 'He Is Who He Is'

How Republicans Made Millions On The Tax Cuts They Pushed Through Congress

NIGERIA: The Paradox Of January 15

Medical Trips - Reps Seek Court Approval For President, Govs, Other Public Office Holders