Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future

The COVID-19 pandemic created historic debt stresses for developing countries, characterized by increased borrowing needs and economic downturns. In sub-Saharan Africa, pre-existing vulnerabilities and limited fiscal space—with 16 countries already at high risk of or in debt distress—exacerbated these challenges. Debt management offices also faced unprecedented operational risks due to volatile market conditions and the shift to remote working arrangements.

• The COVID-19 pandemic caused historic and unusual debt stresses in developing countries, manifesting as a sudden rise in government borrowing needs, economic downturns, strained market conditions, and operational disruptions.
• Sub-Saharan Africa faced severe constraints in managing debt during the pandemic due to limited fiscal space and pre-existing vulnerabilities, with 16 countries identified as being at high risk of or already in debt distress before the crisis.
• Debt management offices (DMOs) encountered heightened operational risks during the pandemic, driven by the need to meet borrowing requirements amidst volatile markets and the transition to remote work, which weakened the control environment.

APA

FSD Africa (2023). Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future. https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/

Chicago

FSD Africa. Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future. 2023. https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/.

Wikipedia

{{cite report |author=FSD Africa |title=Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future |date=12 August 2023 |url=https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/ |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: Insights from the COVID-19 Pandemic and Lessons for the Future}}, institution = {FSD Africa}, year = {2023}, month = aug, url = {https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }