Ethiopia Declares Sovereign Default, Echoing Financial Strain Across AfricaEthiopia, the second most populous nation in Africa, has officially declared a sovereign default, marking the continent’s third such event in as many years. This move follows the nation’s failure to fulfil a $33 million coupon payment on its single international government bond. This financial challenge has been exacerbated by the aftermath of the COVID-19 pandemic and a two-year civil conflict that concluded in November 2022. An Anticipated DefaultThe Ethiopian government had previously indicated its intent to declare a default due to the country’s severe financial strain. With Ethiopia now joining Zambia and Ghana in a major restructuring under the Common Framework, this situation sheds light on the economic challenges faced by African nations.

Source: Ethiopian News December 26, 2023 09:08 UTC