Africa’s rising debt – risks and opportunities

28 June 2018

Rallying commodity prices and higher consumer spending will underpin stronger economic growth in sub-Saharan Africa (SSA) in the next 12 months. After recovering from a slump in 2016, growth is forecasted to rise from 2.6% in 2017 to 3.5% in 2018. This will continue to generate sizeable opportunities for investors, along with the continent’s pressing need for infrastructure, large consumer market and recovering prices of metals and Brent crude.

Despite the improving growth outlook, sovereign debt is rising rapidly in SSA and is a concern for investors. The region’s debt is forecasted by the International Monetary Fund to have reached 53% in 2017, up from under 30% in 2012. In addition to an overview of SSA’s debt dynamics, we assess the risks in the following countries:

  • Angola
  • Ghana
  • Kenya
  • Nigeria
  • Mozambique

We also provide pricing outlooks and highlight some of the key sector opportunities in SSA. Our Credit, Political & Security (CPS) team can help investors to take advantage of the opportunities presented by Africa’s economic growth.

Download Africa Risk Focus

For further information, please contact:

Matt Strong
Partner
Credit, Political, & Security Risk
Matthew_Strong@jltgroup.com
+44 20 7558 3609

Corina Monaghan
Senior Vice President
Credit, Political, & Security Risk
Corina.Monaghan@jltus.com
212.510.1892

Ed Yauch
EVP, Head of CPS
eyauch@irc-group.com
914-358-0443