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Significance
If it cannot pay or reach a bondholder deal within a 14-day grace period, it would become the third African country to default since 2020. These defaults reflect a broader continental problem of increasing debt. Rising debt repayment costs have led to increased taxes and worsening cost-of-living crises, leaving Africans more pessimistic about their futures.
Impacts
Declining government legitimacy will lead to increased repression in some countries.
Falling public confidence in the economy will negatively impact domestic expenditure and investment.
The damage of past programmes and the protection of vested interests will prevent governments from fully implementing IMF agreements.
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2023
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