African indebtedness is critical but still reversible
Subject African debt crisis? Significance Two decades after large-scale debt cancellation began in Sub-Saharan Africa, around one-third of the region’s countries have returned to, or are at imminent risk of, debt distress, according to the IMF. This has increased concerns of a repeat of a 1980s-style debt crisis, which ushered in the region’s fabled ‘lost decade’. Impacts The Republic of the Congo's prospects of restructuring its commercial debts have increased after its recent bailout agreement with the IMF. A speedy resolution to Mozambique’s debt crisis is unlikely after a recent domestic court ruling against its Eurobond-related debt. The recent fall in external borrowing reflects tightened market conditions more than reduced debt appetite, and may reverse in better times.