It hasn’t been easy for African states to finance their developmental and environmental policy objectives over the past few years.
Recent events suggest that the situation may be improving. For the first time in two years, three African states have been able
to access international financial markets, albeit at high interest rates. Kenya, for example, is
now paying over 10% compared to about 7% in 2014.
The COVID pandemic has had a profoundly negative impact on Africa’s sovereign debt situation. Currently, 22 countries are either in debt distress or at high risk of debt distress.
Sub-Saharan Africa has a debt problem. According to the
most recent World Bank debt statistics, in 2018 the region had about $493 billion in long term external debt.