Market Starting to Question Sustainability of African Debt Boom

For a long time I’ve been warning about the many signs that the African debt boom, which is helping to fuel the consumer boom on the continent, looks unsustainable and will end with a major bust down the road. I don’t think we’re at the the final¬†bursting point yet as there’s most likely more QE on the way from the US Fed next year, while the Chinese central bank is starting to crank things up again as well. The combination should continue to fuel African debt issuance and growth, for another few years at least. That said, it’s interesting to note mainstream press starting to question the sustainability of this African debt boom. For example, see “African spending spree faces punishment by markets,” published by Reuters last week.