The Coronavirus crisis hit Africa at a time when many of the continent’s economies were already at risk of debt distress. Multiple shocks caused by the pandemic have increased their need for new loans. The increasing complexity of the loan market makes it hard to achieve debt relief settlements. The way forward is instead diversification of the export industry, reform of the tax systems, investment in human development and closing the digital divide.

Read policy note by NAI researcher Jörgen Levin. External link, opens in new window.