INSUBCONTINENT EXCLUSIVE:
External borrowing serves as a pivotal resource for fostering growth and addressing financial shortfalls.However, unmanaged debt
accumulation poses significant risks, threatening economic stability across Africa, a concern outlined by the IMF.This problem affects
levels.Countries with earnings surpassing their debts exhibit fiscal sustainability and bolster investor trust, facing fewer economic
hurdles during debt settlements.On the contrary, a high debt-to-GDP ratio signifies potential financial turmoil, making nations prone to
(Photo Internet reproduction)Such fiscal pressures can lead to severe restrictions during economic downturns, forcing governments to enforce
austerity, reduce public expenditures, or seek international aid.Spending proportionate to GDP has the potential to precipitate significant
financial crises.The International Monetary Fund identifies several African countries with substantial external debts.Debt Challenges in
Lusophone Africa And BeyondCape Verde tops the list with a 93.25% debt-to-GDP ratio, followed by Mozambique at 65.54%.Rwanda ranks third
by its strategic efforts to manage this high indebtedness, reflects broader continental trends.Careful fiscal management and strategic
international cooperation are crucial as countries work towards sustainable economic health.This approach is essential for building
resilience in their economies.
