Breaking the Trend: Debt Stabilization in Sub-Saharan Africa
IMF Notes, April 25, 2025
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- Breaking the Trend: Debt Stabilization in Sub-Saharan Africa
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Bibliographic details
- Authors: Athene Laws, Thibault Lemaire, Rachid Pafadnam, Nikola Spatafora, Khushboo Khandelwal
- Published: April 25, 2025
- Series: IMF Notes
- DOI: https://doi.org/10.5089/9798229008679.068
Overview and Key Finding
- Historical experience suggests that stabilizing debt across sub-Saharan Africa is still achievable in most cases, even though debt levels are elevated and vulnerabilities are high.
- Countries in the region, over recent decades, have often been able to consolidate (stabilize or reduce) their debt ratios without debt restructuring.
- Many countries have done so recently, even after the end of the commodity super cycle.
Determinants of Successful Debt Stabilization (findings)
- Successful debt stabilization requires measures to strengthen public finances.
- A sound macroeconomic environment is necessary for stabilization.
- Strong institutions are a key component for achieving debt consolidation.
- Pro-growth structural reforms support sustained debt stabilization.
Policy Implications and Recommendations
- Strengthen public financial management to support consolidation efforts.
- Pursue macroeconomic policies that foster stability and reduce vulnerabilities.
- Build institutional capacity to improve debt and fiscal outcomes.
- Implement pro-growth structural reforms to increase resilience and enable gradual debt reduction.
Access and Formats
- Available as an IMF Notes publication and downloadable PDF.
- Also available in português and français.
IMF Notes No 2025/001 — Breaking the Trend: Debt Stabilization in Sub-Saharan Africa (April 25, 2025) by Athene Laws, Thibault Lemaire, Rachid Pafadnam, Nikola Spatafora, Khushboo Khandelwal
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- Breaking the Trend: Debt Stabilization in Sub-Saharan Africa