Cameroon, Rwanda and Côte d'Ivoire are the sub-Saharan African countries that have a greater capacity to adjust their public spending in the event of a new external shock, rating agency Moody's said in a recent analysis. According to the document, the three countries enjoy the greatest flexibility in spending, reflecting high levels of capital spending and the concessional nature of debt (which contains interest expense).
The agency explains that the countries may face new shocks, in an international economic context that suffers from a number of challenges. And a solution to this situation is to cut some public spending.
However, this flexibility is not evident for all countries. Cameroon, Rwanda and Côte d'Ivoire seem to be able to do better, as they do not have too many binding commitments in the structure of their public spending. This is not the case for Namibia, Nigeria and Ghana, which do not have the same opportunities, and any further shock would be difficult for them to absorb.
Idriss Linge