Debt sustainability in Africa has emerged as a key concern among policymakers and development finance institutions (DFIs). Currently, 19 out of 54 countries in Africa exceed the 60% debt-to-gross domestic product (GDP) threshold prescribed by the African Monetary Co-operation Programme (AMCP) and 24 countries have surpassed the 55% debt-to-GDP ratio suggested by the International Monetary Fund (IMF). Of concern is the changing structure of Africa’s debt: countries are tilting towards non-concessional and domestic debt with higher interest rates. Governments’ ease of access to and control over the domestic debt market is leading to excessive public debt accumulation and macroeconomic instability. Aside from the high interest rate and debt-servicing burden, excessive domestic debt also stifles credit to the private sector, the main engine of growth and job creation.
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December 19, 2018
Managing Africa’s Rising Debt: Time for a Multi-Pronged Approach
Debt sustainability in Africa has emerged as a key concern among policymakers and development finance institutions (DFIs). Currently, 19 out of 54 countries in Africa exceed the 60% debt-to-gross domestic product (GDP) threshold prescribed by the African Monetary Co-operation Programme (AMCP) and 24 countries have surpassed the 55% debt-to-GDP ratio suggested by the International Monetary […]
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Nigeria Economic Update (Issue 3)
The
Nigeria stock market indices; All Share Index (ASI) and Market Capitalization
declined by 2.4 percent to close at 26537.36 points and N9.12 trillion
respectively at the end of the trade session this week8 The decline
in the indices, which is attributed to the low subscription for stocks in the
market, led to the partnership between Security and Exchange Commission (SEC)
and Debt Management Office (DMO) to salvage the financial system.
Gross Federally Collected Revenue
Gross Federally Collected Revenue: Both oil and non-oil components of gross federal revenue fell below N40 billion in 2016, after recording a peak of N90 billion in 2013. The decline was most prominen