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Report: Africa's Average External Borrowing Costs Rise Nearly 100% Over Four Years
A report by ONE Data and The Rockefeller Foundation states that the average cost of external borrowing in Africa has nearly doubled over four years. China's lending rates to Africa have more than doubled in the same period. Lowest income nations in Africa continue to benefit from near-zero concessional rates.
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# Africa's Borrowing Costs Rise Sharply A new report released by ONE Data and The Rockefeller Foundation indicates that the average cost of external borrowing in Africa has nearly doubled in four years. Semafor reported on the findings, which highlight increased financial pressures on the continent.
China's lending rates to Africa have more than doubled over the same four-year period, according to data from ONE Data.
Lowest income nations in Africa remain protected by near-zero concessional rates. This protection contrasts with the broader trend of rising costs. The report provides data via ONE Data and The Rockefeller Foundation.
Ghana, Kenya, and Senegal are middle-income countries in Africa affected by higher borrowing costs.
Ghana underwent a prolonged debt restructuring. These events underscore the challenges for middle-income economies in managing external debt. Senegal's situation includes adjustments by international bodies.
The IMF cut Senegal’s economic growth forecast. The IMF expected a larger current account deficit for Senegal due to mounting debt servicing costs, as reported by Reuters via the IMF.
The report was released by ONE Data and The Rockefeller Foundation.
It draws on data from ONE Data for specifics on China's lending rates. Semafor reported the release and key findings from the report. The four-year period covers recent developments in African borrowing.
External borrowing costs have risen amid global economic shifts. The data points to a near doubling of average costs across the continent.
