East African countries go on a loan binge to bridge huge budget deficits
Kenya’s overall public debt has increased in recent years to 71 percent of GDP as at end of 2020, reflecting high deficits, partly driven by past spending on large infrastructure projects, and Covid-19 global shocks. PHOTO | FILE | NMG
East African economies are starting the new year on a borrowing spree with their eyes set on commercial debt to spur their economies out of the Covid-19 pandemic downturn.
Kenya, Tanzania and Uganda have indicated they will be in the market as early as this month for a mix of sovereign bonds, syndicated and commercial loans as they seek to support their budgets, which have huge deficits, amid looming loan repayments for ongoing infrastructure projects.
