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Resource-Backed Loans in Sub-Saharan Africa

Author

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  • Mihalyi,David
  • Hwang,Jyhjong
  • Rivetti,Diego
  • Cust,James Frederick

Abstract

This paper investigates the characteristics of resource-backed lending acrossSub-Saharan Africa. To shed light on this type of lending, the paper presents new information on 30 resource-backedloans between 2004 and 2018, identified through publicly available information. These loans were concentrated in afew countries, where they represented a sizable fraction of all borrowing and were typically taken by centralgovernments and state-owned enterprises. Although the loan terms are mostly opaque, where data are available, the studyfinds that such loans are not cheaper than regular loans. The paper highlights opportunities to transparency andoffers some suggestions for improving the governance of collateralized borrowings across developing countries.

Suggested Citation

  • Mihalyi,David & Hwang,Jyhjong & Rivetti,Diego & Cust,James Frederick, 2022. "Resource-Backed Loans in Sub-Saharan Africa," Policy Research Working Paper Series 9923, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9923
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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