Rising debt levels are fuelling vulnerabilities in Nigeria and other African countries, especially as external debt is shifting from the public to the private sector, experts have warned.
Owing to this, recovery in the continent remains patchy as debt levels are soaring, adding urgency to the continent’s drive to boost trade, the experts that participated in the recently ended World Economic Forum (WEF) on Africa warned at the weekend.
But they noted that Africa’s pace of economic growth was set to pick up this year, stating that there were bright spots in the regional economy.
Five of the world’s fastest-growing economies – Ghana, Ethiopia, Senegal, Côte d’Ivoire and Rwanda – are in sub-Saharan Africa, the Chief Economist for Africa at the World Bank, Albert Zeufack said in a report obtained at the weekend.
But, he stressed that macroeconomic threats to the region were growing as escalating trade tensions between China and the United States threaten a global slowdown.