11. Public Debt Crisis: Status and Implications in the SADC Region

This chapter examines the public debt crisis in the Southern African Development Community (SADC) region. It is generally accepted that a country may need to use public debt to fund its infrastructure projects and support economic growth at some point in its development. When contracted and used for the right reasons, public debt can provide much-needed relief and support and boost economic activities. With international financial markets opening and developing countries gaining access, most SADC countries have utilized the opportunity to get debt to their advantage, and to some—detriment. Instead of adhering to some limit, more than 50% of the SADC countries have borrowed excessively and found themselves in debt distress. This has led to dire consequences including poor public service delivery and persistently low levels of human development. This chapter interrogates the status of debt distress and its implications and offers some policy recommendations that could support a gradual improvement in public debt management. The chapter recognizes that public debt is a wicked problem with far-reaching effects and requires an interdisciplinary approach to resolve.