Ensuring public debt sustainability in Africa: Prospects and policies
- Sustainable levels of public debt may need to be reconsidered in the context of Africa’s high economic growth rates and improved debt management among other factors.
- Current African debt is the lowest in decades, with the fastest decline posted by the most indebted countries thanks to debt relief and accompanying policies that made relief possible.
- There is scope for debt management strategies to emphasise growth -for countries with borrowing space, this includes prudent borrowing for growth-enhancing outlays.
- African policymakers need to adopt sound fiscal policies and complementary monetary policies, while seizing opportunities for growth-enhancing investment.