IMF warns of rising African debt despite faster economic growth


ACCRA (Reuters) – Sub-Saharan African nations are at growing risk of debt distress because of heavy borrowing and gaping deficits, despite an overall uptick in economic growth, the International Monetary Fund warned on Tuesday.

Storm clouds loom as a woman carries maize and an umbrella on her head near Malawi’s capital Lilongwe, February 2, 2016. REUTERS/Mike Hutchings/File Photo

The sober assessment comes as African countries continue to tap international debt markets and issue record levels of debt in foreign currencies, spurred on by insatiable investor demand for yields.

In its economic outlook for the region released in Accra Ghana, the Fund projected the rate of economic expansion would rise to 3.4 percent this year, up from 2.8 percent in 2017, boosted by global growth and higher…

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