Citi Warns of Debt Defaults in Three African Nations

Analysts at CITIGROUP INC have identified Senegal, Mozambique, and Malawi as nations at risk of sovereign debt defaults over the next two years. David Cowan, the bank's Chief Africa Economist, noted that these governments are struggling with the financial repercussions of an oil price shock linked to Iran. Since 2020, the continent has seen four countries—Ghana, Zambia, Ethiopia, and Chad—restructure their debts following economic mismanagement and external pressures such as the pandemic and the invasion of Ukraine by Russia.

Africa is still not entirely out of the woods yet in terms of the debt defaults.