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7
Chapter
Fiscal and public debt sustainability in Africa
Public debt rose in Africa in 2017, reaching 59.1 per cent of GDP. The high and rising debt created debt vulnerabilities for many African countries. About 40 per cent of low-income countries now face debt servicing challenges, and an increasing number of countries are at high risk of debt distress or in debt distress. Five countries are in debt distress today (Chad, Mozambique, South Sudan, Sudan and Zimbabwe) compared with none in 2014.
With 16 African countries in debt distress or high risk of debt distress, low government revenue is the most common factor. To ensure debt sustainability, countries need to increase the mobilization of tax and non-tax revenue and deepen the domestic capital market with increased r
