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African countries, with the exception of Zambia and Ghana, which have already defaulted on their debts, will have about $23 billion in external debt service in 2023.
That number is expected to rise 12% to $25 billion in 2024, according to credit rating agency Fitch.
Zambia is seeking debt relief and is awaiting a decision from its creditors.
The same fate awaits Ghana, Ethiopia, Tunisia and others.
In Ghana and Zambia, the IMF has provided relief loans of $3 billion and $1.3 billion, respectively.
Critics, however, argue that loan restructuring will only delay the debt crisis, not solve it.
They point to the international financial system, which they say is a creditor-centric lending practice that constrains the choices of developing countries.
Etsehiwot Kebret is a debt and development finance expert at Development Reimagined. She joins the show to discuss why borrowers’ clubs can help African governments get better deals from their creditors.
Angola becomes Africa’s third largest economy
Angola’s GDP is projected to reach $135 billion in 2023 by the IMF. This means the country will replace Kenya ($117 billion) as her third largest economy in sub-Saharan Africa.
If this advantage is lost, Kenya will also lose the advantage it needs to attract foreign investment.
Angola returned to growth last year, aided by rising oil prices.
Rwanda: Local beauty products dominate the cosmetics market
Conservation companies in Rwanda add value to trees and herbs to make beauty products.
The company wants to grab a piece of the personal care products market, which is expected to reach $90 million in 2027.
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