Weaker Currencies Add to East African Debt Repayment Woes

By June 2020, East African economies -Kenya, Uganda, Tanzania and Rwanda- had accumulated over U.S.$86 billion in public debt, with Kenya holding 77.11% of the debt, followed by Uganda with 17.4%, Rwanda at 5% and Uganda with 0.4%. These economies are facing a potential rise in debt servicing, owing to the depreciation of regional currencies, currently weighed down by uncertainties in the global economy. This includes the disruption of global trade by the Covid-19 pandemic and political jitters linked to the region's election cycles. Monetary authorities are concerned about currency stability, with the persistent fall in value against major foreign currencies that could make repayment of external loans an arduous task. The resultant increase in interest payments is expected to be a substantial drain on resources, which could have otherwise been used to finance development programmes.

InFocus

Don't Miss

AllAfrica publishes around 600 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.