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Can a borrower's club lead to cheaper, sustainable debt? [Business Africa]

Etsehiwot Kebret listens during an interview with Business Africa presenter Ronald Kato   -  
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Business Africa

African countries, excluding Zambia and Ghana who have already defaulted, will pay nearly $23 billion in external debt servicing in 2023.

That figure will jump 12% to $25 billion in 2024, according to credit rating agency Fitch.

Zambia has sought debt relief and is waiting on a decision from its creditors.

The same fate awaits Ghana, Ethiopia, and Tunisia, among others.

In Ghana and Zambia, the IMF has given $3 billion and $1.3 billion in bailout loans respectively.

However, critics have argued that loan restructuring can only delay a debt crisis but will not fix it.

They point to the international financial system, which they say is creditor centric and lending practices that constrain the choices of developing countries.

Etsehiwot Kebret is a debt and development finance expert with Development Reimagined. She joins the show to discuss why a borrowers club can help African governments to obtain better deals from creditors.

Angola becomes Africa’s third-largest economy

Angola’s GDP is projected by the IMF to hit $135 billion in 2023. It means the country displaces Kenya ($117 billion) as the third-largest economy in sub-Saharan Africa.

With this advantage gone, Kenya also loses the edge it needs to attract foreign investment.

Angola returned to growth last year buoyed by higher oil prices.

Rwanda: Local beauty products take cosmetics market by storm

A conservation enterprise in Rwanda is adding value to trees and herbs to make beauty products.

The company hopes to take a slice of the personal care products market whose value is expected to reach $90 million in 2027.