News from 2017-03-02 / KfW Research

The external debt levels of the poorest Sub-Saharan countries must be monitored closely

The low income countries of Sub-Saharan Africa just experienced an acute debt crisis in the 1970s to 1990s. The renewed sharp increase in their foreign debt since 2010 should therefore be monitored closely. Abundant global liquidity and low interest rates currently make borrowing attractive. However, the volatile economic growth of these countries and the recent strong depreciation of their currencies have increased their debt sustainability risk.


The external debt levels of the poorest Sub-Saharan countries must be monitored closely

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