Debt Default Risks Loom for Senegal, Mozambique, and Malawi Amid Fiscal Strain
Senegal, Mozambique, and Malawi are facing potential sovereign debt defaults within the next two years due to fiscal pressures exacerbated by rising oil prices linked to the ongoing conflict involving Iran. These countries are struggling with increased borrowing costs and economic recovery challenges post-COVID-19. The situation is compounded by currency depreciation, which raises the cost of servicing foreign-denominated debt. While Senegal is managing to stay afloat, Mozambique and Malawi are at immediate risk of default. The debt crisis in these countries is part of a broader trend in Africa, where several nations have already defaulted and undergone debt restructuring. 
