Can Africa Bear Its Debts?

Andrew Dabalen, the chief economist for the Africa region at the World Bank, stated on Monday that Africa's debt sustainability remains "unclear," as low growth and high inflation pose challenges that weigh heavily on the stability of many economies across the continent. Dabalen highlighted that stagflation is one of the greatest concerns. According to the World Bank, growth is expected to reach 3.1 percent in 2023, while inflation is projected to be in double digits across large areas of the continent. The Bank noted that what exacerbates these worries is that nearly half of the sub-Saharan African countries are struggling to meet their debt obligations or are significantly at risk of default. Dabalen explained that many countries in the continent possess a unique stock of mineral resources necessary for a low-carbon future, stating, "Many of the required metals come from African countries... so they can indeed work and try to maximize revenues to build different forms of industrial economies."