- In the World Bank's 2022 fiscal year, the low-income countries have been named in the bank's latest ranking
- According to the bank, about 20 African countries have been ranked as low-income countries on the continent
- The than bank states that a Gross National Income of a countries is calculated based on their per capita income
The World Bank ranks all countries in the world into different development categories which are based on certain measurements.
There are four categories: High-income and low-income countries, upper-middle-income countries, lower-middle-income countries and low-income countries, according to Business Insider.
Low-income, high-income, upper-middle-income explained
The high-income countries have a Gross Nation Income (GNI) per capita of at least $12,696, while the upper-middle-income countries have a GNI per capita of $4.096. On the other hand, the GNI per capita in lower-middle-income countries stands at between $1,046 and $4,095, while low-income countries have a GNI per capita of $1,045 or less.
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According to the World Bank, for the 2022 fiscal year, low-income economies with a GNI per capita are calculated using the World Bank's Atlas method of $1.045 or less.
In 2020, lower-middle-income economies were classified as those with a GNI per capita of $1,046 and $4,095.
The upper-middle-income economies have a GNI per capita of $12,696 or more.
These low-income countries are considered underdeveloped or emerging markets and poorer than countries in the other three development challenges.
Many countries rely on development aids and subsidised loans from multilateral lenders to survive.
There are currently 27 countries that are categorised under the low-income list. Of these 27 countries, 24 are in sub-Saharan Africa, while the rest are in the Middle East.
The list of the countries are presented as
- Somalia: GNI per capita of $130.
- Mozambique: GNI per capita of $490.
- Madagascar: GNI per capita of $520.
- Central African Republic: GNI per capita of $520.
- DR Congo: GNI per capita of $530.
- Sierra Leone: GNI per capita of $540.
- Liberia: GNI per capita of $580.
- Sudan: GNI per capita of $590.
- Niger: GNI per capita of $600.
- Eritrea: GNI per capita of $600.
- Togo: GNI per capita of $690.
- Chad: GNI per capita of $700.
- Gambia: GNI per capita of $750.
- Uganda: GNI per capita of $780.
- Burkina Faso: GNI per capita of $780.
- Burundi: GNI per capita of $780
- Guinea Bissau: GNI per capita of $820.
- Rwanda: GNI per capita of $830.
- Ethiopia: GNI per capita of $850.
- Mali: GNI per capita of $870
List of 34 heavily indebted African countries, according to World Bank
Legit.ng reported that according to Business Insider, there are 34 poor countries in Africa that are heavily indebted. The list is a joint initiative of the World Bank and the International Monetary Fund (IMF). The initiative was launched in 1996.
Information from the IMF Fact Sheet says the initiative wants to ensure that no poor country ever faces a debt burden that it cannot manage.
The debt relief efforts work through multilateral financial organisations including the global lenders and they collaborate with the governments of poor countries to lower and reduce external debts to manageable levels.