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By Magreth Nunuhe

Windhoek – Southern Africa is the most heavily indebted region in sub-Saharan Africa (SSA), with cumulative external debt stock in excess of US $ 304 billion, according to the World Bank's international debt statistics in 2019.

World Bank statistics cover the external debt and financial flows of 121 low- and middle-income countries in 2017, using information from the World Bank's Debtor Reporting System (DRS) .

Among the 16 SADC Member States, South Africa, Angola, Mauritius, Tanzania and Zambia are the five most indebted countries, with a stock of external debt ranging from 16.3 billion dollars (Zambia) at the highest level of $ 176.3 billion in South Africa. Sub-Saharan Africa (SSA).

Namibia and Seychelles, which are upper-middle-income countries, were not included in the assessment, which covered only low- and middle-income countries.

Other countries in sub-Saharan Africa accumulated cumulative external debt of $ 231 billion, Nigeria being the largest amounting to $ 40.2 billion, followed by Ethiopia ($ 26.5 billion), Kenya ($ 26.4 billion), Ghana ($ 22 billion) and Papua New Guinea ($ 17.3 billion).

The largest economies in sub-Saharan Africa, Nigeria and South Africa, led to the sharp increase in outstanding external debt to 29% and 21% respectively.

South Africa also recorded the highest bond issue, or $ 19 billion out of the $ 27 billion offered to sub-Saharan Africa by sovereign governments and sector entities. in 2017, while sovereign and public sector issuance amounted to $ 8 billion. Nigeria takes 4.8 billion USD, Côte d 'Ivoire (2 billion USD), Senegal (1.1 billion USD) and Gabon (0.2 billion USD).

The total external debt shown in the International Debt Statistics is the sum of long-term external debt, short-term debt and IMF credit, as well as total debt to non-resident creditors, repayable in local currency. foreign and national.

Long-term debt has an original maturity of more than one year, while short-term debt is defined as an external debt with an original maturity of one year or less.

International Debt Statistics 2019 presents detailed data on stocks and flows, including government and publicly guaranteed debt, owed or guaranteed by the government; unsecured private debt owed by private sector borrowers; official bilateral and multilateral creditors; private creditors, including banks, bondholders, supplier creditors and other private entities.

According to the report, Sub-Saharan African countries accumulated their external debt at a faster pace than low- and middle-income countries in other regions in 2017, with a total stock of external debt rising to 535,000. billions of dollars.

While debt sustainability in sub-Saharan Africa is raising growing concern, it is not slowing debt accumulation in many of the region's poorest countries, as the stock of external debt has risen. increased by more than 200% between 2010 and 2017 in Cameroon, Ethiopia and Rwanda in Uganda and Zambia and more than 140% in Ghana, Kenya and Liberia.

Increasing debt from non-traditional bilateral creditors and private creditors, including bond issues and syndicated loans to commercial banks, has significantly changed the growth of external debt in sub-Saharan Africa in recent years. years.

China accounts for more than 60 percent of the region's long-term debt to bilateral creditors in 2017, which has accumulated through the financing of major infrastructure projects in many countries in the region. reported the World Bank.

Meanwhile, the total share of bilateral and multilateral official creditors fell to 34% at the end of 2017, after 44% in 2010.

The main sources of information for the 2017 International Debt Statistics are reports to the World Bank through its Debtor Reporting System from member countries that have received either a loan from the International Bank for Reconstruction and development, a credit from the International Development Association.