AfDB is warning about the higher level of debt

Source: newsthemegh.com/Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd.

The African Development Bank (AfDB) is warning about the higher level of debt that African countries are carrying even before the onset of the Covid-19 pandemic, when the debt stood at 61% of Gross Domestic Product.

25 African countries are already carrying excess debt or have a high risk of doing so.

According to the Bank Group, the structure of African debt has changed considerably. Bilateral debt now represents 27% versus 52% in 2000, whereas commercial debt accounts for 43% of total debt up from 20% in 2000.