DOI: 10.61192/indpol.1802181 ISSN: 2757-9840

An Empirical Analysis o the Debt Sustainablity in Sub-Saharian Africa Amid Covid-19 Pandemic: A Dynamic Panel Approach

Saudah Mohammed Sanni, Recep Yorulmaz
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Sub-Saharan Africa’s economic landscape has faced severe pressure due to the Covid-19 pandemic, which has heightened the fiscal vulnerabilities and raised concerns about the long-term financial stability in the region. This study examines the debt trajectory of the sub-saharan Africa (SSA) using the country specific debt indicatots as well as the macroeconomic data as the case study while analyzing their performance during and aftermath pandemic. The study employed a dynamic approach in its empirical study in order to connect the impact as the result of the pandemic shocks including contractions of the economy, debt accumulation, reduction in the fiscal revenues, increasing public spending in the healthcareThe findings reveal that the region’s debt-to-GDP ratios rise by more than 50%, leading to the risk of debt distress. The study evaluates the effectiveness of international interventions, particularly the Debt Service Suspension Initiative (DSSI), in mitigating debt accumulation. Policy recommendations reveal the importance of structural economic reforms, improved fiscal transparency and diversification to boost debt sustainability. This study contributes to the growing discussion on post-pandemic recovery by providing insights into policy frameworks that may guide SSA countries towards sustainable economic growth.

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