What do you know about largest external debts countries in Africa? How do they manage to survive through their debts? What is the definition of external debt?
Countries of Africa region are considered to have one of the fastest economies grows. Nevertheless, the problem of foreign debts still has an influence on the continent. The fatal truth lies within the status of underdeveloped countries. Africa countries total external debt can`t compare with developed countries but still, the speed of getting new debts is pretty impressive. External debt by definition means the total debt of private companies and public bodies to nonresidents. According to the world bank, the foreign debts of Africa keep rising; that means that the countries continue to borrow from large economies. The current global economic situation does not play on the side of Africa countries. The next paragraphs describe the most indebted countries in the region.
READ ALSO: Is Nigeria underdeveloped or developing?
Nigerian economy is largely based on the exporting of crude oil. The recent situation on the oil market was not beneficial for the country. Also, terrorist attacks on the oil facilities made a huge impact on the economy of the country. According to the world bank, Nigeria, external debts keep rising from $10 billion in 2015 to the $11 billion in 2016.
It`s one of the largest economy in East Africa and one of top twenty economies of the whole region. The United Republic of Tanzania primary source of revenue is agriculture, which is not the best choice for the modern country. Thus, for the last two years, the external debts of Tanzania keep increasing from $13 billion in 2014 to more than $16 billion in 2016.
Main export goods for Hana are gold and crude oil, but the recent situation on the market has become a reason of new declining of Ghana economy. According to the Bank of Ghana, the total external debt has doubled since 2006. And for today the Ghana`s external debt places more than 58 percent of total debt.
Despite continued economic growth in recent years, Ethiopia did not escape the fate of previous countries in facing realities of current world economy state. According to the Ethiopia bank, due to the continuance borrowing of Ethiopia private enterprises, the total external debt rose to $14 billion in 2015.
The continuance Civil war in Angola left its imprint on the economy of the country. Despite tremendous potential of natural resources, like gas, oil, diamonds, gold and also great agricultural potential, Angola still one of the poorest country in the region with half of population living below the poor line. Angola`s external debt grows high with more than $25 billion in 2015.
Despite favorable situation not only in natural resources like oil and gas, but Tunisia also manufactures car parts and rely on tourism. Nevertheless, due to constantan money borrowing from other countries on technological development, Tunisia external debt keeps growing and estimated of more than $28 billion in 2015.
According to trading economics, Morocco external debt almost doubled since January 2013. According to Economy and Finance Ministry of Morocco, for today the total foreign debt is estimated at more than 40% of country`s GDP. The external debt changed from 277.7 billion dirhams in 2013 to 460 billion dirhams in 2016.
According to the World Bank Group, the economic situation in Sudan is catastrophic. The National Surveys reveals information that about 50% of citizens live below the poor line. Moreover, Sudan enterprises keeps borrowing money from external sources and the total external debt is estimated $45.1 billion in 2013.
Egypt`s political turmoil hit hard to the economy of the country. Its main sphere of revenue is tourism suffered gradually in recent years. According to the World Bank Group, the economy of Egypt is in balance but at the same time on the edge with rising total external debt of $48 billion.
It`s the country with an outrageous total external debt of $143 billion in 2013 and since then, the debt keeps growing. According to foreign debt statics of the South Africa religions, there is no region with positive income. Thus, South Africa has nothing than keep borrowing money from other countries to balance the economy. Moreover, the political situation in the country is not stable. Especially frustrating is a situation with a high rate of corruption of the representatives of most top government ranks of South Africa.