Publications /
Policy Brief

Back
Debt Sustainability and Development Financing in Sub- Saharan Africa: Recent Dynamics
Authors
Lotfi El Jai
September 18, 2019

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

  • Authors
    Policy Center for the New South
    April 22, 2025
    The Atlantic Dialogues conference continues to serve as a premier platform for dialogue, cooperation, and bridge- building, fostering meaningful exchanges that transcend geographical and ideological divides. Since its inception in 2012, it has evolved into a dynamic space where ideas converge, diverse perspectives are shared, and innovative strategies are developed to navigate the complexities of an ever-changing world. Anchored in the foundational values of openness, inclusivity, ...
  • Authors
    Michael Terungwa David
    April 22, 2025
    As the world commemorates Earth Day 2025 under the theme "Planet vs. Plastics," it is a timely moment to turn our attention to one of the planet’s most overlooked heroes: the soil. Often hidden beneath our feet and largely absent from climate conversations, soil plays a vital role in sustaining life, supporting biodiversity, and buffering the impacts of climate change. Honouring the soil as Earth’s silent lifeline is not just a tribute—it is a call to action. ...
  • Authors
    Fadoua Ammari
    April 18, 2025
    This Policy Brief analyzes the strategic significance of the reaffirmation by the United States, on April 8, 2025, of its support for Morocco’s sovereignty over the Moroccan Sahara and of Morocco’s autonomy plan for the territory. This position, which has been maintained under different U.S. administrations, confirms the appropriateness of the Moroccan approach based on compromise, regional stability, and economic integration. It reinforces the isolation of the Polisario Front, whos ...
  • April 18, 2025
    In this episode, we discuss the Memorandum of Understanding between Ethiopia and Somaliland, exploring its key terms and strategic motivations. We assess how the deal reshapes the securit ...
  • April 17, 2025
    This policy brief explores the transformative role of BRICS as a platform for Global South cooperation and an emerging alternative to Western-dominated governance frameworks. Established with a shared goal of reforming international institutions and addressing global decision-making imbalances, BRICS has evolved from an economic concept into a multifaceted alliance that spans finance, diplomacy, development, and security. As the global order shifts towards multipolarity, BRICS has p ...
  • Authors
    Fadoua Ammari
    April 16, 2025
    Le présent Policy Brief analyse la portée stratégique de la réaffirmation, le 8 avril 2025, du soutien américain à la souveraineté du Maroc sur son Sahara et à son plan d’autonomie. Ce positionnement, maintenu sous différentes Administrations américaines, consacre la pertinence de l’approche marocaine fondée sur le compromis, la stabilité régionale et l’intégration économique. Il renforce la dynamique d’isolement du Front Polisario, dont le discours figé sur l’indépendance peine à m ...
  • Authors
    April 16, 2025
    The second Trump administration’s reversal of federal climate policy is reshaping the U.S. energy and industrial landscape, with significant implications for macroeconomic performance, clean technology competitiveness, and global climate cooperation. While the deregulatory shift and emphasis on fossil-fuel production may generate short-term output gains in selected sectors, the long-term structural transformation necessary for sustained growth in an increasingly low-carbon global ec ...
  • April 15, 2025
    في هذه الحلقة من برنامج "حديث الثلاثاء"، نسلّط الضوء على واقع حقوق وإدماج الأشخاص في وضعية إعاقة في المغرب. نناقش مع الناشط الجمعوي عبد الرحمان المودني أبرز التحولات التي يشهدها هذا المجال، من الالتزامات الدولية والمقتضيات الدستورية إلى البرامج الوطنية التي تهدف إلى تعزيز المساواة وتكاف...
  • April 11, 2025
    The recent German elections saw the far-right AfD double its vote share to 20.8%.In this podcast We analyze the factors behind this surge and its potential impact on Germany's political l ...