Effect of External Debt on Sustainable Economic Development in Emerging Economies of Sub-Sahara Africa

Wilson Herbert; Ibrahim Babangida Umar

doi:10.56201/ijefm.v10.no12.2025.pg92.105

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Effect of External Debt on Sustainable Economic Development in Emerging Economies of Sub-Sahara Africa

Wilson Herbert, Ibrahim Babangida Umar

Abstract

The study examined the effect of external debt on sustainable economic development in emerging economies of Sub-Sahara Africa from 2013-2024. Measured by bilateral and multilateral debt, results revealed that multilateral debt has a positive significant effect on the human capital index (HDI), whereas bilateral debt had no significant effect. The study recommends that governments prioritize concessional loans from multilateral institutions like the World Bank and IMF while linking bilateral loans specifically to capital ventures to ensure funds enhance human capital.

Keywords

External DebtSustainable Economic DevelopmentBilateral DebtMultilateral DebtSub-Sahara Africa

References

Bloom, D. E., et al. (2023). Impact of bilateral loans on social infrastructure. Chen, X., et al. (2024). World Bank projects and GDP growth. IMF. (2024). Public debt challenges in Sub-Sahara Africa. Reinhart, C. M., & Rogoff, K. S. (2021). Sovereign obligations and IFIs. UNCTAD. (2024). Global public debt trends.

Effect of External Debt on Sustainable Economic Development in Emerging Economies of Sub-Sahara Africa

Abstract

Keywords

References

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