ECIC AR 2024 9TH

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

Integrated Report 2024

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Table 8: Debt developments in selected countries

Country

Debt Update

• Angola has finalised debt restructuring with its biggest creditor, China, which accounts for 40% of its external debt. This will reduce the country’s debt servicing costs and free up an estimated US$150 million to US$200 million a month, which can be reallocated to other obligations. • The country introduced measures to boost revenue through broadening its tax base and this has yielded positive results and improved the fiscal outlook. • The country has adopted several measures in its medium debt strategy, which include, diversifying its financing sources and preference for loan facilities with lower interest rates and longer tenors. • Chad’s already vulnerable economy was severely impacted by several shocks, including the COVID-19 pandemic, volatility in oil prices, and climate change. • The IMF approved a three-year arrangement of US$570.75 million under the Extended Credit Facility in 2021. • In November 2022, the country reached an agreement with its main bilateral and commercial creditors to restructure approximately US$2.9 billion of its external debt within the G20 Common Framework. • Ethiopia defaulted in December 2023 after failing to make a US$33 million coupon payment on its only international government bond. • Negotiations with creditors for debt structuring are still in the early stages. • Ghana’s economy was undermined by external shocks increasing inflation, exchange rate depreciation and the loss of external buffers which led to fiscal pressures on an already constrained fiscus. The country defaulted on most of its foreign debt in December 2022 following an increase in debt servicing costs. • In 2023, the country secured a 36-month ECF agreement for US$3 billion with the IMF. • The country reached an agreement with its official creditors to restructure US$5.4 billion of debt in early 2024. However, the process for a debt restructuring agreement of US$13 billion with bondholders is ongoing after failed negotiations in January 2024, which is a setback to the county’s ability to avoid a default and further economic crisis. • Kenya’s has high debt levels, with a projected public debt burden of 73.3% of GDP in 2024 and external debt at 42.4%. In the first half of 2024, the government reached a staff level agreement with the IMF on fiscal consolidation terms to safeguard debt sustainability for further funding disbursement under the various facilities. • After protests, the government reversed a key tax bill aimed at increasing government revenue in aid to prevent the country from defaulting on its debt. External financing from the World Bank in 2025 should further support Kenya’s target to anchor a debt-to-GDP ratio of 55% by 2029. • The country continues to face elevated levels of debt and fiscal consolidation is therefore crucial. Meanwhile, it is planning a Eurobond buyback following its new issuance early in the year.

ANGOLA

CHAD

ETHIOPIA

GHANA

KENYA

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