Study on Managing Sovereign Debt in Times of Crisis: Economic Impact of COVID-19 Policy Responses and Implications on Debt Dynamics

This report examines the economic impact of the COVID-19 pandemic on MEFMI member states in sub-Saharan Africa, detailing how public health measures and external shocks led to GDP declines and increased fiscal pressure.

• The COVID-19 pandemic caused a sharp economic downturn in sub-Saharan Africa, driven by public health measures such as national lockdowns, curfews, and border closures. These actions negatively impacted livelihoods and aggregate demand, particularly within the services sectors, including tourism, transport, education, entertainment, sports, and restaurants.
• Economic distress in MEFMI member states was intensified by a large informal sector and a deteriorating external environment marked by supply chain disruptions and weak global demand. This resulted in reduced foreign direct investment (FDI) inflows, lower export receipts, and a shortage of key imports, ultimately leading to declining GDP growth rates and reduced local revenue collections.
• MEFMI member states exhibit significant diversity in income levels and economic structures. Four countries are low-income (Malawi, Mozambique, Rwanda, and Uganda), seven are lower-middle income (Angola, Eswatini, Kenya, Lesotho, Tanzania, Zambia, and Zimbabwe), and two are upper-middle income (Botswana and Namibia). The group includes both mineral-rich and oil-exporting economies.

APA

FSD Africa (2023). Study on Managing Sovereign Debt in Times of Crisis: Economic Impact of COVID-19 Policy Responses and Implications on Debt Dynamics. https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-economic-impact-of-covid-19-policy-responses-and-implications-on-debt-dynamics/

Chicago

FSD Africa. Study on Managing Sovereign Debt in Times of Crisis: Economic Impact of COVID-19 Policy Responses and Implications on Debt Dynamics. 2023. https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-economic-impact-of-covid-19-policy-responses-and-implications-on-debt-dynamics/.

Wikipedia

{{cite report |author=FSD Africa |title=Study on Managing Sovereign Debt in Times of Crisis: Economic Impact of COVID-19 Policy Responses and Implications on Debt Dynamics |date=12 August 2023 |url=https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-economic-impact-of-covid-19-policy-responses-and-implications-on-debt-dynamics/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2023study, author = {{FSD Africa}}, title = {{Study on Managing Sovereign Debt in Times of Crisis: Economic Impact of COVID-19 Policy Responses and Implications on Debt Dynamics}}, institution = {FSD Africa}, year = {2023}, month = aug, url = {https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-economic-impact-of-covid-19-policy-responses-and-implications-on-debt-dynamics/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }