Middle East & Africa in 2021

Many African countries will emerge from the current coronavirus-driven socioeconomic crisis even more indebted and financially stressed than before. This will raise questions about their ability to repay external debts and cause concerns about their contribution to a possible emerging-market credit crisis. Although 2021 is set to be a stronger year for exports in Africa, the debt-servicing burden is projected by the EIU to remain alarmingly high.

Focusing on this growing debt problem, The Economist Intelligence Unit (EIU) has recently published a guide to the Middle East & Africa in 2021. The guide also takes a look at three key economies in the region where we expect to see landmark political and economic shifts this year.

Here’s what can be found in our regional guide to the Middle East & Africa in 2021:

Regional summary

Looming debt-service woes:

• Background to now

• The test for creditors and sovereigns in 2021

• HIPC-style round three is a possibility

Egypt

Key things to watch:

• Maintaining political stability remains a concern

• Infrastructure projects will continue to receive government support

• Heading for debt difficulties?

Saudi Arabia

Key things to watch:

• Normalisation of relations with Israel

• Reboot the economy

• Petrodollar diplomacy

South Africa

Key things to watch:

• Will South Africa keep the lights on?

• Land reform or land grabs?

• Potential conviction of Jacob Zuma on corruption charges

The complete “Middle East & Africa in 2021” guide is available to download here.

The EIU has created a series of regional guides highlighting the trends to watch in some of the world’s key economies this year. Download your regional guide:

Americas in 2021

Asia in 2021

Europe in 2021