Government debt and borrowing costs for sub-Saharan African countries have been rising in recent years. In several countries, external debt servicing coststhe money needed to cover the interest and principal on debtare now at their highest level since 2003. The rising debt servicing costs are already reducing funding for economic development; Kenya cut its development budget for the upcoming year and Zambia suspended development of projects below 80 percent completion. These cutbacks come at a time when the region is falling short of the needed investment rates of 30 percent of GDP or higher over a sustained period to achieve economic transformation. The rising debt levels and debt servicing cost against the backdrop of growing dome…
Read the full article at: https://www.brookings.edu/blog/africa-in-focus/2018/10/22/better-tax-collection-can-help-tackle-rising-debt-in-africa-and-the-challenge-of-development-finance/