Publisher: Covenant University

Debt Burden and African Economic Development

Augustine N. Eneanya
KEYWORDS: DEBT BURDEN AND AFRICAN ECONOMIC DEVELOPMENT

ABSTRACT:

African countries often embark on infrastructural development programmes to enhance economic development.  They borrow in order to meet up with development needs when they lack the necessary funds.  This has led to huge debt overhang as most of these countries fail to meet up with their debt repayment obligations.  Compounding the problem is the debt servicing obligations tied to the debt stock.  This paper, therefore, analyzed critically the implications of debt overhang and post-debt relief management to economic development in Africa. It found that they have negative impact on economic growth.  It, therefore, recommended that African countries should rely more on internal loan, improve their export trade,embark upon anti-corruption policies and good governance.  External loan could only be envisaged when needed for productive projects.


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