Fiscal policy cocktails of 2021

Governments across Sub-Saharan Africa seem to have mixed plans for fiscal policy this year. There are signs that policymakers in some countries – including Nigeria, Ghana and perhaps Kenya – will continue to provide stimulus in 2021. But this will worsen debt concerns. In other parts of the region, worrying public debt burdens will push policymakers towards fiscal consolidation. South Africa is a prime example, where the government has already outlined harsh austerity plans. And Angola will have to tighten the belt under the IMF’s careful watch.