list of african countries by external debt
Just ask the Greeks, the Argentinians or the Venezuelans. To the extent that there is no such thing as zero external debt, and both the most and the least-developed countries in the world alike (and all those in between) today struggle more than ever under the burden of what they owe. By 2018, 40 percent of sub-Saharan African countries were at high risk of debt distress – double the proportion recorded just five years earlier. Ideally, countries will have the ability to pay back debt without incurring further debt to meet obligations. Box 98, Wits 2050, Johannesburg, South Africa. Total debt was valued at EGP 1.9 trillion in December 2014. Note: National debt is different to ‘External debt‘ – External debt … Here are the 20 nations in the world with the most debt to GDP ratios. Then, they run to their partners in the international market seeking funds. In 2019, the country’s nominal GDP was reported at $ 33.903 billion (2018). bKabarak University, Private Bag 20157, Kenya. The increase in external debt stock over the same period is more pronounced for some countries: 885 percent for Ethiopia, 521 percent for Zambia, 437 percent for Uganda, and 395 percent for Ghana. The Angolan government and economy are still recovering from the Angolan Civil War that plagued the country from independence in 1975 until 2002. This paper discusses the Sub-Saharan Africa external debt problem. What can possibly go wrong? Consequently, governments in low-income countries often face considerable economic deficits, given their high levels of indebtedness in relation to GDP and export receipts. The problem of foreign debt has been a major and persistent setback for the African economy; despite being one of the fastest-growing economies in the entire globe. (2) Policy makers and politicians of African states, faced by a high rate of interest on the debt, exceeding their perceptions , making them imposing much larger taxes On the shoulders of their fellow citizens. According to the World Fact Book, as of 31 December 2014, South Africa was running an estimated debt of $143 billion. For emerging nations, this kind of financing is even more essential to cover for domestic resource gaps and pay for programs that can help reduce poverty and foster longer-term growth. Zimbabwe. Around 20% of African government external debt is owed to China, says the Jubilee Debt Campaign, a charity which campaigns for the cancellation of poor countries' debt. The country’s revenue is largely sourced from agriculture which we know is often subject to failure. The United States leads, followed by the Euro area and the United Kingdom. As of 31 December 2013, Tunisia’s debt stood at a colossal estimate of $26.95 billion. This risky debt could lead to some African countries defaulting. Africa Egypt: 1984 [citation needed] Africa Gabon: 1999–2005: Africa Ghana: 1979 [citation needed] Africa Ghana: 1982 Most of Angolan oil is going towards the repayment of Chinese debts, despite Angola being the second largest producer of oil in Africa. Net debt figure is the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. The continent’s borrowing binge started in 2007 and it continues unabated. For rich nations facing a downturn, taking a loan at low interest rates can be more desirable the raising taxes. Africa’s Gross Domestic Product (GDP) growth is actually second to South Asia overall, despite its debt issues. The net international investment position (NIIP) is the difference between the external financial assets and liabilities of a country. Consequently, their financing needs to be increased to 7.4 percent of GDP, while public and publicly guaranteed debt reached an estimated 50 percent of GDP in June 2015. their external debt stocks double. The ‘Pawon’ Singer, Olamide Badoo is a Nigerian singer, rapper, and entrepreneur. Many economists see the accumulated debt as a tax on the future output of a nation: investments on education, health, infrastructure and the like are discouraged when an ever-growing portion of revenues goes to pay back creditors. In 2005, China announced forgiveness of $10 billion zero-interest loans for Africa. This site uses cookies to optimize functionality and give you the best possible experience. According to the FinScope South Africa 2013 financial survey, about five million South Africans are battling with over-indebtedness. Likhit Wagle, general manager of Global Banking & Financial Markets at IBM, speaks to Global Finance about the industry urgency to digitize and counter the threat from Big Tech. Countries like Kenya didn’t make the top 20; as of March 2014 it has one of the lowest external debt in Africa and the world at $3.6 billion. Africa debt payments African government external debt payments have increased dramatically in the last few years. They embezzle most of the money that could have been used to start or complete a standard project and end up conniving with the contractors, to develop substandard projects. 13134. Ghana’s sovereign Eurobond, issued in 2007, marked the entry of African countries into the Others borrow directly from multilateral companies like the World Bank and the IMF. The country’s revenue is largely sourced from agriculture which we know is often subject to failure. The United Republic of Tanzania is the second-largest economy in the East African Community and the twelfth largest in Africa. Copyright © 2014 This has increased debt-servicing costs for African countries. While the region is third overall, individual African countries stand out as borrowers. Angola’s foreign debt was estimated to be $22.71 billion as of 31 December 2013. African countries have the smallest debts in the world compare to other countries. "Foreign countries also have a role to play in this," says Fanwell Bokosi, who heads the African Forum and Network on Debt and Development (AFRODAD). Sub-Saharan Africa is confronting a pronounced rise in public debt. China’s overseas lending. It focuses on factors leading to the accumulation of the debts and their impact on the debtor nations. Figure 2: External debt to China (debt stock as share of GDP) – top 50 recipients. Countries like Kenya didn’t make the top 20; as of March 2014 it has one of the lowest external debt in Africa and the world at $3.6 billion. In January 2020, the country’s external debt was at 109. In terms of development, Kenya has one of the best road and rail infrastructural projects and much of its economy has received a boost from tourism, education, telecommunications, and agriculture. Global Finance is a media partner of: May 23, 2018 . 2019. The tables include public and publicly guaranteed debt stock and debt services due by creditor country. Presently, Angola, which is Africa’s second-largest oil producer, is struggling to cope with crude prices that have slid more than 40 percent over the past year. Ethiopia . But Chinese investment in Africa has been seen by the rest of the world as present-day colonialism as many African states are sinking deep into heavy debt and many view this as a strategy by the Chinese government to control vital resources in a country which defaults its debt. The debtors can be governments, corporations and private citizens; the creditors include governments, commercial banks and international financial institutions such as the International Monetary Fund and the World Bank. The Debt Challenge to African Growth. But, most are blinded by the fat cheques than the terms of these bonds they are obtaining, thereby creating future problems for the next generations and administrations. 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The information was revealed this week by the World Bank in its new International Debt Statistics (IDS) report. External debt—also called "foreign" or "sovereign debt"—is the total capital that is owed to creditors outside of a country's border. Ghana’s total debt stock as at the end of March 2015 was GH¢88.2 billion, the Bank of Ghana has said that ‘of the total public debt, domestic debt constituted 41.4 percent and external debt 58.6 percent’. The same source noted a 31.8 billion dirham increase in external debt of public institutions and enterprises and an 11.2 billion hike in Treasury debt. Romania . The fall of the Cedi against the dollar has also drastically affected the economy of Ghana of late. "Foreign countries also have a role to play in this," says Fanwell Bokosi, who heads the African Forum and Network on Debt and Development (AFRODAD). African debt is on the rise, and that fact is causing tensions to spark in unexpected places. For Global Finance’s top TCM banks, navigating the Covid crisis means AI, innovation, better FX functionality and real-time for virtually everything. An Op-ed first published on Project Syndicate by Abebe Aemro Selassie. Egypt’s external debt, however, continued to rise still, and according to September’s central bank bulletin, by 30 June 2015, it has risen by 4.3 percent, reaching $48 billion compared to $46 billion a year before and generally exceeding the nation’s debt levels in the early 1990s, according to recent data issued by the World Bank. Its GDP was set at $99.246 billion in 2019 and expected to depreciate to 70.00 USD Billion. Despite its growing wealth, it sits at 163 out of 188 countries in the Human Development Index. Accounting for close to half of global liabilities, the top three borrowers in the world are the United States, the European Union and the United Kingdom. For example, Luxembourg, Switzerland and China have high levels of assets – i.e. There has been a shift to market-based loans and a decline in concessional loans as a share of external loans, from 66% in 2005 to 54% in 2016. they hold the external debt of other countries. Meanwhile, in May and June, Ghana’s debt increased to 24000 USD Million in the second quarter of 2020 from 22900 USD Million in the first quarter of 2020. External debt—also called "foreign" or "sovereign debt"—is the total capital that is owed to creditors outside of a country's border. 20. Foreign exchange reserves have fallen by more than half, since 2011 when they were valued at $36 billion before the uprising. The country of Italy currently has the ranking of third largest … Debtors often inherit the faults of their fathers, as when loans incurred by governments and regimes no longer in power fall to a subsequent administration. Below is a list of the top ten African countries with the largest Chinese debt: 1. In many developing countries, governments’ usually borrow issuing securities and government bonds. A country that lives persistently beyond its means will eventually become unable to make good on its fiscal promises, defaulting on its debt. At the moment, Ethiopia’s GDP is $103.607 billion and foreign debt is hitting a whopping $28 billion (December 2019). Although the government has been fighting tooth and nail, employing various strategies to end the country’s shaming history of heavy indebtedness, the debt rate continues to rise, putting the country under severe financial pressure. National debt refers to the amount of total government debt a country has. Mon, Mar 08, 2021 LOGIN Subscribe The Debt Challenge to African Growth. During the pandemic it rose to historical highs everywhere. In October, foreign ministry spokesperson Zhao Lijian said in a statement that the Export-Import Bank of China (Cexim) had signed debt suspension agreements with 11 African countries. Shocking, but that's the reality at hand. Sudan has broad strips of poverty and glaring inequality between regions. May 23, 2018. Find Out The treasury accounted for 50.8% of the total external public debt followed by public institutions with 48.9% while the share of banks and local collectives was limited at 0.3%. The numbers used in this list do not include internal debt, such as that which the government accumulates, but external debt, the kind of debt that is owed to other countries. In 2019, Chizzy Alichi who is unarguably one of Nollywood's most beautiful actresses got hitched to the love of her life, Chike Ugochukwu Mbah,... Blended families are the new normal, especially as celebrity relationships don't seem to last for some obvious reasons. As of April 2015, the country’s Prime Minister, Habib Essid stated that Tunisia’s debt ratio has reached 53% of her Gross Domestic Product and later 39.87 billion USD (2018). While their debt, given these governments' stability and proven capability to pay back those who lent them money, is generally considered risk-free, there are growing concerns about the sustainability of such high level of borrowing, in particular when any shifts in market conditions or a rise in interest rates could make repayments harder to service. USD Million. First of all, they should empower their judicial system and institutions of justice, in a high capacity. As at September 2014, Tanzania’s external debt stood at $13.7 billion and according to various sources, the debt was steadily increasing and was close to Tsh28 trillion by January this year – a trend which is predicted to continue in the coming two years: The Oxford Economics forecast projects a… Norway – Total debt: $623,223,000,000. Africa's External Debt Situation bv ROBERT L. CURRY, JR.* WHAT, if anything, should be done about the rapidly mounting external debt of African and other Third-World countries? Now the DRC and Kenya can be added to the list. It is important to point out that the debt we are referring to in this context is the one we call foreign or external debt which is the total debt owed by both public and private bodies to nonresidents of a country, payable in an internationally accepted foreign currency, goods or services. Over the last decade, the structure of Africa’s debt profile has changed considerably. This is the highest level since 2004, when such payments were 12.6% of government revenue (see graph below). In 2018, Chinese President Xi Ji… Most African countries have borrowed more than is prudent, said the IMF last year; 18 were classed as being in debt distress, or at high risk of it. There has been a shift to market-based loans and a decline in concessional loans as a share of external loans, from 66% in 2005 to 54% in 2016. "Debt is like any other trap," the 19th century American author Josh Billings has said: "Easy enough to get into, but hard enough to get out of." flows remain the most appropriate source of external finance for LICs, highlighting the need for continued efforts by the international community to improve the availability and predictability of concessional financing (PIN No. 1. Dec/19. https://moguldom.com/262023/10-african-countries-that-are-in-debt-to-china The most indebted nations are, in fact, the richest ones. Countries resort to foreign borrowing to maintain financial liquidity and stimulate growth. Some celebrity relationships and marriages end... Nigeria is home to several billionaires and while only 4 people in the country were included in the recent Forbes list of the world’s... Nigeria is not called the giant of Africa just for its massive population but also the economic strength of the country. It has a debt to GDP ratio of 2.46 percent among a population of 439,000 people, which makes it the world’s country with the lowest debt. This page displays a table with actual values, consensus figures, forecasts, statistics and … As of September 2014, Tanzania’s external debt stood at $13.7 billion and $17.50 billion (November 2019). It is the biggest factor that poses a hindrance to development in any society, and African politicians who hold sway in these countries are patrons and barons of corrupt practices. Kiribati – 8.6% Another dot in Oceania, the country of Kiribati actually is a group of 33 islands in the … Many countries are also still suffering from the economic impact of colonialism and the misappropriation of their funds and resources, which pose an overhang constraint on growth and development. Created by Wendy Ven-dee Huang Description IDs Country Report Tags Last Updated 10/12/2020 12:40:06 PM Poor fiscal responsibility is not the only culprit. … Amid the continued pressure on foreign reserves, Egypt has had to depreciate its currency twice this year and investment banks expect further devaluing before the end of 2015.