Breaking the Trend: Debt Stabilization in Sub-Saharan Africa

Historical experience suggests that stabilizing debt across sub-Saharan Africa is still achievable in most cases, even though debt levels are elevated and vulnerabilities are high. Countries in the region, over recent decades, have often been able to consolidate (stabilize or reduce) their debt ratios without debt restructuring. Many countries have done so recently, even after the end of the commodity super cycle. Successful debt stabilization requires measures to strengthen public finances and a sound macroeconomic environment, strong institutions, and pro-growth structural reforms.