Morocco, Among Least Indebted Countries in Africa- UNCTAD Says

Morocco was listed among the least indebted countries in Africa in a report issued on July 21 by the United Nations Conference on trade and Development (UNCTAD.)

The document, dubbed Economic Development in Africa Report 2016, highlights the sustainability of Morocco’s external debt and the viability of its investments in comparison to other countries in Africa.

The report warns of borrowing risks and highlighted the role public-private partnerships can play in funding development projects. “In Africa, public–private partnerships are being used especially to finance infrastructure. Of the 52 countries considered during the period 1990–2014, Nigeria tops the list with $37.9 billion of investment, followed by Morocco and South Africa,” says the UNCTAD document.

At least $600 billion will be needed each year to achieve the Sustainable Development Goals in Africa, according to the report. Official development aid and external debt are unlikely to cover those needs, the report finds.

The document argues that African countries should look for complementary sources of revenue, including remittances, which have been growing rapidly, reaching $63.8 billion to Africa in 2014. The report discusses how remittances and diaspora savings can contribute to public and development finance.

Together with the global community, Africa must also tackle illicit financial flows, which can be as high as $50 billion per year. Between 1970 and 2008, Africa lost an estimated $854 billion in illicit financial flows, roughly equal to all official development assistance received by the continent in that time, says the document.