War in Ukraine Pushes Public Debt Ratios to 20-Year High in Africa
- Almost half of sub-Saharan economies face debt distress
- Region’s economic growth will slow to 3.8% this year
Higher food inflation will add to food insecurity and social tensions, given that food accounts for about 40% of consumer spending in sub-Saharan Africa.
Photographer: Leon Sadiki/BloombergRussia’s war with Ukraine has pushed public-debt ratios in sub-Saharan Africa to the highest level in two decades, with almost half of the region’s economies facing debt distress, the International Monetary Fund said.
Surging commodity prices, a result of disruptions to food and energy exports from Russia and Ukraine, are undermining fiscal and external balances, threatening food security and energy affordability for the region’s most vulnerable, the IMF said in a report published Thursday. Higher fertilizer and energy costs are also expected to drive inflation as they increase costs for harvesting, transporting and processing food, it said.