Is Africa Headed For Another Debt Crisis? Assessing Solvency in a Sluggish Subcontinent

Abstract

Several African countries are headed into another debt crisis, just a decade or so after their slates had been wiped clean by debt relief. This is based on an assessment of country-specific debt dynamics: the debt to GDP ratios, the rate of growth of debt, the terms at which debt is being contracted relative to economic growth rates, and the willingness of governments to run primary budget surpluses if necessary.

Keywords: public debt, middle-income countries, debt crisis, debt dynamics, Sub-Saharan Africa, debt relief