| Sub-Saharan Africa has been strongly affected by the Europe Sovereign debt crisis, despite initial optimism that the global financial system would have few spillover effects on the continent. The mechanisms through which the crisis has affected Sub-Saharan Africa include a contraction in global trade and a related collapse in primary commodity exports, on which many countries are dependent. Foreign investment and migrant worker remittances are also expected to decrease significantly, and some analysts predict cuts in foreign aid in the medium term if the crisis persists. Africa’s most powerful economies have proven particularly vulnerable to the downturn. Several countries which are seen as having solid macroeconomic governance have sought international financial assistance to cope with the impact of the crisis. This dissertation is aim to analyze the different phase of financial crisis, the debt crisis to find the inter-relation of the economy of different economy entity. Through classifying the impact of Europe sovereign debt crisis to Sub-Saharan economy, this paper also provides some solutions to dwindle the negative impact. |
