Governments of highly indebted African countries need to take a number of steps to alleviate the stark trade-offs between servicing expensive debt, supporting high and growing development needs, and stabilizing domestic currencies. This comes as the Egyptian state, highly indebted after years of heavy borrowing, has struggled to service its ballooning debt. Other highly indebted countries struggling to service their liabilities may have to do the same amid rising concerns about slow progress of the Common Framework. Secondly, countries need to fix their revenue collection problems. Lastly, governments need to restructure their debt portfolios.

Source: The North Africa Journal February 05, 2024 23:35 UTC