United States Institute of Peace | Virtual Event

Description: Debt issuance can help finance much-needed investments in Sub-Saharan countries and sort out key bottlenecks to growth. However, while many of the investments made were essential for economic progress, several governments overestimated the growth impact of such investments and underestimated implementation constraints and future shocks, both leading to borrowing beyond the country’s repayment capacity and eventually driving debt distress. This has threatened their macroeconomic stability and limited their ability to invest in the critical areas necessary for long-term economic growth, such as climate resilience, education, healthcare, and social services.

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