Huge borrowing, Covid-19 shocks, leave region in a funding dilemma

Nairobi.

Moi Avenue in Kenya’s Capital City Nairobi. The prolonged health crisis is complicating efforts to fully reopen economies. PHOTO | FILE | NMG

East Africa’s economic managers face an uphill battle in 2021 to raise funds that are urgently needed to contain the pandemic and revive their economies as Covid-19 related shocks continue to unfold across the region.

This is partly because excessive borrowing prior to the pandemic pushed countries closer to the debt ceiling with debt-to-GDP ratios now exceeding 50 percent. This leaves little room for external borrowing in 2021.