Lagos, Nigeria

Tag: debt

Subsidies: Africa’s troubling addiction

The average African feels entitled to subsidies. Due to prevailing poverty, subsidies are perceived to be a necessity because of the wide gap between the market-determined price of goods and services and the financial strength of the wider population. From agriculture subsidies in Kenya and Malawi, to transport subsidies in South Africa, and fuel subsidies…
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Africa: The pandemic’s debt legacy

Money begets money. That is the logical justification for debt accumulation. The pursuit of economic prosperity or at least survival amidst limited economic growth explains why countries borrow. Debt is considered a stimulant – borrow, invest in productive activities, and reap the benefits of growth. However, as countries emerge from the troughs of the pandemic-induced…
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Pandemic debt: On the brink of a debt crisis

As the world copes with the health implications of COVID-19, the turnout of events has resulted into severe implications for the fiscal positions of various emerging and frontier economies. While dollar inflows from commodity exports and remittances have collapsed, the softening of local currencies have raised levels of indebtedness. Thus, emergency financing flows from International…
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