Fiscal policy-makers in sub-Saharan Africa should be “cautious” when it comes to forecasting the deficits they can finance, allowing for the possibility of losing market access, the Bank of Uganda deputy governor has said.

Louis Kasekende, on May 3, warned financing conditions in both external and domestic markets can “tighten very rapidly”, reducing the scope for financing deficits via the markets.

If conditions worsen and monetary financing “becomes inevitable”, as governments cannot raise the