SPECIAL REPORT: AFRICA’S OIL PRODUCERS RIDE ECONOMIC OPTIMISM WHILE OTHERS SLUMP

   Tue, 26 April 2022

Some African oil producers are witnessing an unexpected economic revival, while other crude exporters fail to benefit from the commodity super cycle. For many African countries, the impact of the “crisis on top of a crisis,” according to the IMF, could be worse than the global financial crisis 15 years ago. Low-income countries urgently require financial assistance and debt relief. However, Russia and its diplomatic voting bloc may hold up any initiatives at multilateral institutions, while few western countries agree on further SDR issuance at the IMF. Therefore, the provision of effective and sufficient financial support by multilaterals may be delayed or frustrated, thus potentially allowing Africa’s food insecurity and debt sustainability problems to deteriorate. At least two more African countries may default on their sovereign debt in coming months.