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Rapid public debt build-up in Sub-Saharan Africa

Rapid public debt build-up in Sub-Saharan Africa

Recent debt accumulation has led to the highest debt ratios since the region received debt relief. Export receipts have grown much slower than foreign borrowing, raising concerns about repayment capacity. For some countries, lacking fiscal discipline and public financial management are main causes for outsized public debt build-up. Government borrowing in Sub-Saharan Africa has become increasingly non-concessional. Many Sub-Saharan African countries have gained access to international financial markets, exposing them to volatile market sentiment and shocks. Unprecedented borrowing in foreign currencies is exposing countries to exchange rate risks. The profile of bilateral creditors altered towards more non-Paris Club lenders (especially China). Debt structures have become increasingly complex, raising transparency issues.