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Resource-Backed Loans in Sub-Saharan Africa

Author

Listed:
  • David Mihalyi
  • Jyhjong Hwang
  • Diego Rivetti
  • James Cust

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.
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Suggested Citation

  • David Mihalyi & Jyhjong Hwang & Diego Rivetti & James Cust, 2021. "Resource-Backed Loans in Sub-Saharan Africa," World Bank Publications - Reports 40145, The World Bank Group.
    • Handle: RePEc:wbk:wboper:40145
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    2. Coulibaly, Yacouba, 2025. "The effects of resource-backed loans on deforestation: Evidence from developing countries," World Development, Elsevier, vol. 188(C).
    3. Asiedu, Michael Kwame & Baafi, Joseph Antwi, 2025. "The effects of high indebtedness on natural resources extraction in Ghana," Resources Policy, Elsevier, vol. 107(C).

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