Ethiopia: External debt major set back to economy

ESAT News (December 28, 2016)

The problem of foreign debt has been a major and persistent set back for the African Economy, despite being one of the fastest growing economy in the entire globe.

According to a report by the website Answer Africa, the economic setback is mainly a result of foreign debt.

The report ranked Ethiopia the 7th, with foreign debt of 22 billion dollars with the first being South africa with an estimated debt of 143 billion dollars.

The report said in the case of Ethiopia, public enterprises have continued to borrow heavily to fund their investment. The financing needs by the public enterprises increased to 7.4 percent of the GDP.

The report revealed the public and publicly guaranteed debt reached n estimated 50 per cent of the GDP.