Policy BriefFiscal Policy$19

Fiscal Policy and Debt Sustainability in Sub-Saharan Africa

July 202524 pages2,534 downloads

Authors

Dr. Grace Ndlovu, Prof. John Mwangi

Fiscal Policy and Debt Sustainability in Sub-Saharan Africa
$19

Abstract

Policy recommendations for improving fiscal management and ensuring debt sustainability in Sub-Saharan African economies facing elevated debt levels and constrained fiscal space.

Overview

This policy brief analyzes debt dynamics across the region, examining debt composition, servicing costs, and refinancing risks. It provides actionable recommendations for revenue mobilization, expenditure efficiency, and debt restructuring strategies.

Key Findings

  • 1

    Average debt-to-GDP ratio stabilized at 55% in 2025

  • 2

    Interest payments consume 18% of government revenues

  • 3

    Domestic revenue mobilization potential of 4-6% of GDP

  • 4

    Green bonds and SDR reallocations providing new financing options

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