The external debt problem in Africa : a comparative study of Nigeria and Morocco

In this paper, the African external debt problem with particular reference to Nigeria and Morocco is extensively analysed and statistical indicators show that it is severe and has adverse effects on investment The analysis also finds that fiscal expenditure, balance of payments and global interest rate are the crucial factors in explaining the accumulation of external debt in the two countries. Although the problem tends to exhibit some differences in characteristics between the two countries, the fact remains that they both belong to the same category of highly indebted countries. It is therefore necessary they embark on a rapid programme of privatization aimed at reducing fiscal expenditure, and a sustained export promotion programme to improve balance of payments. (InWent/DÜI)