Despite a broader emerging market recovery, three African countries—Senegal, Mozambique, and Malawi—could default on their sovereign debt within the next two years. Citi’s chief Africa economist, David Cowan, sounded the alarm, pointing to currency collapses and the financial shockwaves from surging oil prices linked to the Iran conflict. While Senegal might scrape through 2026, a 2027 default remains a real threat. Fortunately, the fallout for Malawi and Mozambique could be contained quickly since their debt is largely tied to multilateral lenders rather than complex international bonds. These warnings serve as a sobering reminder that while some nations are thriving, others remain dangerously vulnerable to the volatile swings of global energy prices.
CNBC Africa
