The twin tailwinds of debt relief programmes from Western governments and high commodity prices have helped to dramatically reduce public debt levels in sub-Saharan Africa over the past few years. But these tailwinds are likely to ease over the coming years, casting doubt over whether the reduction in public debt burdens can be sustained. In this Africa Watch, we take a closer look at the region’s debt dynamics and explain why, although public debt is likely to edge up over the next five years or so, this is unlikely to pose a major risk to fiscal sustainability.
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