According to a report published by IMF, the debt-GDP ratios in most sub-Saharan Africa countries remains low, but a few countries have experienced an increase in the rate of debt-GDP, thereby putting them in potential financial distress in the long-term.
Central Africa Republic and Malawi have the biggest debt-GDP ratios at more than 20 percent and more than 15 percent respectively, as illustrated in this 2012-2013 chart. (courtesy of IMF)
The high levels of debt-GDP ratio are putting long-term debt sustainability and macroeconomic stability at risk. However, a revision of the composition of primary spending could go a long way towards reducing this type of risk.
Generally, Africa remains one of the most promising in terms of economic growth prospects, with average annual growth estimates currently pegged at about 5.5 percent through 2014-2015. This means that it should remain attractive to investors for the foreseeable future.
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