Debt and Finance Profiles: Africa

Abstract

The present report contains a review of the debt-finance profile of Africa, in particular since the mid-1990s, when there was a general resurgence in growth across the continent. Section 2 is an analysis of public debt ratio trends and levels in Africa. The focus of section 3 is on the composition and structure of external debt. Section 3 is a discussion of the participation of African Governments in the international bond market and the credit risk ratings of Eurobond market participants. Section 5 is an empirical analysis of the risk premium on African sovereign bonds and the drivers of that premium. Section 6 is a discussion of the debt-service and interest-payment challenges faced by African Governments. The report concludes, in section 7, with a discussion of prospects and policy implications.