Ethiopia has joined Zambia and Ghana as Africa’s latest debt defaulters after failing to make an interest payment to its external creditors following the end of the grace period on December 25, 2023. The development underscores the challenges faced by African countries in servicing external debt. Ethiopia has been grappling with material decline in external liquidity, significant external financing gaps, and the government’s participation in the G20 Common Framework (CF) debt relief initiative. About half of Ethiopia’s debt is external debt. According to IMF data, Ethiopia’s external debt as a percentage of its GDP is 23%, lower than Kenya’s 31.2%.

Source: Ethiopian News December 26, 2023 07:54 UTC