Easing sovereign debt risks bolster the region’s resilience

10th March 2026

The shock from the conflict in the Middle East has only had a modest impact on government borrowing costs in Africa, reflecting a marked improvement in sovereign risk profiles in the last few years. While most economies should be able to weather higher oil prices and/or a stronger dollar, Kenya, Mozambique and Uganda look most at risk of a re-emergence of debt distress fears.

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