Publications /
Policy Brief

Back
Download PDF
Debt Sustainability and Development Financing in Sub- Saharan Africa: Recent Dynamics
Authors
Badr Mandri
Lotfi El Jai
September 18, 2019
Related topics: 

Countries in Sub-Saharan Africa (SSA) currently face a yearly infrastructure financing gap ranging between $68-$108 billion along with other socio-economic challenges (AfDB, 2019). Debt financing remains a major source of growth as countries in the region work to achieve their developmental needs and the Sustainable Development Goals (SDGs). The levels of official development aid (ODA) and foreign direct investments (FDIs) remain volatile to fully meet the region financial needs. However, the sustainability of SSA external debt raises serious concerns if one looks at the rapid debt accumulation in recent years. This brief will highlight the recent changes in the nature and quality of debt in SSA along with details of the risks related to the shift in the creditors base. Finally, this brief aims to demonstrate the impact of these risks on debt sustainability and the future of development financing in SSA.

In the early part of the 21st century, debt sustainability challenged Sub-Saharan Africa (SSA) as it sought to reach the Millennium Development Goals (MDGs). Following two episodes of debt relief (HIPC and MDRI2), the average debt-to-GDP ratio has decreased from over 100% in 2000 to less than 40% in 2010 (figure 1), representing a debt stock reduction of almost $100 billion (IMF, 2017). This was a breath of fresh air that would have allowed SSA countries to sustain their current and future debt levels and promote development expenditures in the region.

However, with the stagnation in the level of official development aid following the Global Financial Crisis of 2007, and the difficulties of the region’s countries in mobilizing domestic resources to finance their infrastructure and socio-economic development needs

RELATED CONTENT

  • La COP, sauvera-t-elle le climat ?
    Carole Mathieu 
    December 10, 2019
    Carole Mathieu, chercheure au Centre Énergie de l’Ifri, analyse les enjeux de la COP25 et les contraintes des approches adoptées dans les mobilisations internationales en faveur du climat ...
  • What are the Atlantic Dialogues ? "Otaviano Canuto"
    December 9, 2019
    The 8th edition of the Atlantic Dialogues conference is on its way ! From 12 to 14 December 2019, Marrakesh will host leaders from the Atlantic Bassin to connect, debate and inspire on building new mental maps around the Southern Atlantic, on sharing ideas and on boosting the Atlantic r...
  • Présence militaire française au Sahel : Le temps des décisions
    Authors
    Abdelhak Bassou
    December 7, 2019
    La présence de la France au Sahel n’est pas un sujet facile à discuter, à commenter ou à traiter. D’une part, l’intervention française, en 2013, (Opération Serval), avait permis de prolonger l’existence de l’Etat malien qui, sans l’opération française, n’aurait pas pu résister aux menées terroristes qui visaient Bamako. D’autre part, la présence française semble ne rien pouvoir changer à l’avancée du terrorisme dans la région, le phénomène semble même gagner du terrain devant l’imp ...
  • Download PDF
    L’Afrique face aux defis proteiformes du cyberespace
    Authors
    Mourad El Manir
    December 3, 2019
    Le prix du meilleur roman africain de science-fiction au titre de l’année 2017 avait été remporté par Tade Thompson pour son livre intitulé «Rosewater» qui aborde l’histoire d’un agent des services de sécurité luttant contre les cyber-fraudes au Nigéria en 2066. Cette référence à un roman de science-fiction pour introduire les enjeux cybernétiques en Afrique n’est pas fortuite dans la mesure où le mot «cyberespace», inspiré du mot «cybernétique», fut utilisé, pour la première fois, ...
  • La dégradation de la sécurité au Sahel
    Alain Antil 
    December 02, 2019
    Alain Antil, Chercheur et Directeur du Centre Afrique Subsaharienne de l’IFRI, analyse la dégradation de la sécurité au Sahel à travers une cartographie des zones touchées par le terroris ...
  • The IMF, Argentina and Ecuador: Have Lessons Been Learned?
    Authors
    Otaviano Canuto
    December 2, 2019
    Following the global financial crisis of 2007-08, the International Monetary Fund (IMF) went through a period of self-examination. The old joke that its acronym stood for “It’s Mostly Fiscal” bothered some of its leaders, who believed the organization needed to focus less on austerity and more thoroughly consider issues such as inequality, poverty reduction and gender equality when making loans and other key decisions. There was talk of a “new IMF” that had learned from its old mist ...
  • The Unstable Global Order: About a Missing Voice from the South
    Authors
    Osama El Mourabit
    November 29, 2019
    During the past few years, the different global ongoing events have left us baffled and astonished. Given the decreasing ability to understand and assimilate the amount of changes, mutations, and crises, one would wonder: what happened to the global order? How has -in this short period of time- the power of its values and institutions that much decreased? What are the causes for these protectionist and massive populist waves? Why are we witnessing an increasing settlement of conflic ...