Until a few years ago, before the pandemic, most African economies were among the world’s best performing in terms of debt. Revenues were sufficient and debt-to-GDP levels were largely well below the IMF’s 50% threshold.
But today, that is no longer the case. Many of the continent’s largest economies are in a desperate struggle to avoid getting sucked into a debt spiral where they’re borrowing more and more just to repay loans. That, plus the challenges brought on by surging food prices, weakening currencies and, of course, the effects of the ongoing pandemic all make this a very difficult time.
