East African countries are facing an immediate risk of defaulting on their loans in the coming months due to a combination of rising debt servicing costs, more borrowing, rising costs of imports and higher inflationary pressures associated with the continued appreciation of the dollar.
And this may undermine prospects of a full economic recovery from the pandemic as economic growth slows due to worldwide slowdown, tighter global financial conditions, and volatile commodity prices that spill into the region still struggling from the fall out of the pandemic according to forecasts by the International Monetary Fund.
