The specter of excessive debt reappears for sub-Saharan Africa after the coronavirus pandemic. The International Monetary Fund has just sounded the alarm, urging donor countries to be “bold” about the debt wall that awaits Africa.
Sub-Saharan Africa needs the next 3 years to revive their economies is huge. According to the IMF, it would require $ 890 billion in external funding for the countries of the region. This amount represents more than half of their total GDP. It will therefore return to massive borrowing to stabilize economies weakened by the global health crisis, while the region was on track for debt reduction at the start of the pandemic.
Crisis complicated by oil prices
Two-thirds of the required amount has already been identified with commitments from international financial institutions, bilateral creditors and private creditors. It will therefore be necessary to find $ 290 billion – by 2023 – to close the economic deficit. Oil-producing countries like Nigeria and Angola, which are facing a drop in both the price of black gold and the volume of their exports, should see their debt ratios rise significantly.
The IMF calls on the G20, made up of key donors themselves, which are deeply affected by the coronavirus crisis, to be more daring, for example by reducing debt rates. The Foundation still welcomes the moratorium introduced in April last year, first for 6 months and recently extended to next year.