Debt levels for poor countries have reached record highs; made even worse by government spending on measures to stimulate economies that have been devastated by the coronavirus (COVID-19) lockdowns.
A failure by South Africa to lower public debt risks triggering credit downgrades deeper into subinvestment, Fitch said on Wednesday.
South Africa’s plans to rein in government spending will be hard to implement due to low economic growth, ratings agency Fitch said on Tuesday, adding the country had a poor track record of delivering debt and spending cuts.
Zambia’s expenditure is expected to rise by approximately 20 billion kwacha ($1.11 billion) this year as the local currency weakens, piling more pressure on a nation already struggling with huge debt, President Edgar Lungu said on Thursday.
U.S. Secretary of State Mike Pompeo on Wednesday blasted China’s policy on lending to African countries, reiterating Washington’s charges that it creates unsustainable debt burdens.