Debt, poverty and inequality in Southern Africa

This working paper examines the interrelationships between external debt, poverty, and inequality in Southern Africa. It analyzes the extent to which growing debt burdens affect economic development, income distribution, and poverty reduction efforts across countries in the subregion. The study explores the structural factors driving debt accumulation, assesses the socioeconomic consequences of debt servicing obligations, and evaluates the effectiveness of debt relief initiatives and public policy responses. Drawing on regional evidence and comparative analysis, the paper highlights the challenges of achieving inclusive and sustainable development in the context of fiscal constraints and unequal economic outcomes. The findings underscore the importance of prudent debt management, equitable resource allocation, and coordinated development strategies to reduce poverty and inequality while maintaining macroeconomic stability.