IMF warns of rising African debt in spite of faster economic growth


The IMF on Tuesday warned that Sub-Saharan African nations are at growing risk of debt distress because of heavy borrowing and gaping deficits, in spite of an overall uptick in economic growth.

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 per cent this year, up from 2.8 per cent in 2017, boosted by global growth and higher commodity prices.

Slower growth in South Africa and Nigeria – the continent’s two largest economies – weighed on the region-wide average, but the IMF expects growth to…

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