Debt crisis looms as Covid-19 hits Africa

Government revenues in Africa are estimated to drop by $45 billion (R769.93 billion) this year from the pre-Covid-19 forecast.

The depreciation will further compound African countries’ high levels of debt, which have increased to roughly $40 billion annually, driven higher by the depreciation of many of their currencies this year.

These were the words of President Cyril Ramaphosa, who was speaking in his capacity as the African Union (AU) chairperson during the handover ceremony of the African Continental Free Trade Area (AfCFTA) secretariat on Thursday.

“In 2020, African debt is