Public debt management and its impact on economic stability: Comparative analysis in Central Africa

Abstract

Public debt management represents a major challenge for the economic stability of Central African countries, a region marked by variable debt levels and contrasting macroeconomic contexts. In an economic environment often subject to exogenous shocks, debt sustainability becomes a determining factor in avoiding financial crises and promoting sustainable growth. Our study proposes a comparative analysis of public debt management strategies adopted by several Central African countries and their impact on economic stability. The main objective is to assess the extent to which debt policies and management mechanisms in place influence the economic resilience of the states concerned. The focus is on the effects of debt on growth, inflation and the ability of governments to maintain fiscal stability in the face of economic fluctuations. The methodological approach is based on a qualitative and quantitative analysis combining the examination of problematic macroeconomic data from institutional sources and the study of debt management frameworks in each country. Key indicators such as the debt-to-GDP ratio, the budget balance and the cost of debt servicing are used to measure the impact of debt on economic stability.The results reveal that debt sustainability varies significantly depending on the policies adopted by each country. Some States resort to excessive debt without effective repayment strategies, encountering budgetary difficulties and accumulated inflation, while others, thanks to prudent debt management policies and diversification of sources of financing, manage to maintain relative economic stability. It also emerges that dependence on external financing, particularly those with binding conditions, constitutes a factor of vulnerability for several countries studied. In conclusion, effective management of public debt in Central Africa requires strategies adapted to the economic specificities of each country. Strengthened budgetary discipline, diversification of sources of financing and greater transparency in the management of loans are essential to ensure economic stability and avoid crises linked to excessive debt.