Domestic vs Foreign debts, A viable option for Africa’s debt crisis: Covid-19 implications

The outbreak of the corona virus (Covid-19) global pandemic brought major disruptions to many Africa economies and the rest of the world. This paper builds on the notion of how Covid-19 has influenced structural changes to the supply of domestic and foreign public debts; and how they have implicated African countries. It follows claims presented by the Organization for Economic Cooperation and Development, OECD (2019), which projected that external private finance inflows to developing economies could drop by USD 700 billion in 2020 compared to 2019 levels, which shows a 60% increase compared to the major disruption caused by the 2008 Global Financial Crisis. Hence, this stirred analytical debates to whether there is an alternative for developing economies to seek foreign or external debts to thrive. In addition, this paper explored dynamics around local borrowing or debts as a suitable alternative option in building sustainable economies compared to foreign borrowing.