Debt vulnerability of Africa and its recovery from the corona virus disease pandemic

Abstract

African countries have been greatly affected by the coronavirus disease (COVID-19) pandemic and by the economic-related repercussions that followed. Countries have put in place various measures to mitigate the adverse impact of the global pandemic and to strengthen their economic recovery. However, the significant weakening of macroeconomic variables such as gross domestic product (GDP) growth, inflation, exchange rate, total revenue and fiscal balance have highlighted the debt vulnerabilities of African countries, a situation that may no longer be sustainable. The present policy brief provides an overview of the economic impact that the COVID-19 pandemic has had on African countries, the challenges they face in terms of debt vulnerability, and the policy options available that could facilitate the continent’s economic recovery.