Kenya, Nigeria tread a fine line after Ghana debt default, analysts say
Kenya, Nigeria tread a fine line after Ghana debt default, analysts say
By David Whitehouse
Posted on Monday, 16 January 2023
A man walks past a currency exchange point, showing an image of the U.S. dollar in Cairo, Egypt, March 22, 2022. REUTERS/Mohamed Abd El Ghany
Ghana’s domestic debt restructuring followed by a default on most of its international debt has focused attention on the sustainability of African government finances.
Are other African sovereigns likely to follow? None are flashing red right now, analysts say. But Kenya, Egypt and Nigeria are the African sovereigns which “stand out” due to the high proportion of government revenue used to make interest payments, says Frank Gill, sovereign specialist at Standard & Poor´s Global Ratings.
Kenya
