The European Business Council for Africa

The head of the Paris Club, which represents rich creditor nations, this week hinted that more than short-term relief may be needed to help poor and emerging economies deal with spiralling debt.

Borrowing by developing countries has soared in recent years - hitting a record $55tr in 2018 - but Africa is the primary focus of calls for debt relief or cancellation. This despite the continent having a relatively low average debt-to-GDP ratio.

The likes of Angola, Mozambique and Djibouti are at over 100%, but most economies hover around the 50% - 60% mark, which is deemed to be manageable by the International Monetary Fund (IMF).

 

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