DebtSage is an advanced analytical platform that leverages machine learning to predict sovereign debt crises and provide actionable policy recommendations for African countries. Using 60+ years of fiscal data across 14 countries, our system achieves 93.4% accuracy in identifying debt distress situations.
# DebtSage - AI-Powered African Sovereign Debt Crisis Analysis
### Project Overview
**DebtSage** is an advanced analytical platform that leverages machine learning to predict sovereign debt crises and provide actionable policy recommendations for African countries. Using 60+ years of fiscal data across 14 countries, our system achieves 93.4% accuracy in identifying debt distress situations.
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## 🎯 Key Features
### 1. Machine Learning Crisis Prediction
- **XGBoost Classifier**: 93.4% AUC-ROC, 90.6% precision, 78.4% recall
- **Random Forest & Logistic Regression**: Ensemble validation
- **41 Engineered Features**: Temporal dynamics, volatility measures, fiscal ratios
- **Real-time Risk Scoring**: 0-100% crisis probability for each country
### 2. Comprehensive Fiscal Analysis
- **Debt Sustainability Metrics**: Debt-to-GDP, debt service burden
- **Fiscal Balance Assessment**: Budget deficits, revenue efficiency
- **Social Spending Analysis**: Health & education trade-offs
- **Cross-Country Comparisons**: Fiscal health rankings
### 3. 5-Year Debt Projections
- **Debt Dynamics Modeling**: Interest rates, GDP growth, primary balance
- **Three Scenarios**: Baseline, optimistic, stress
- **Sustainability Thresholds**: 70% debt-to-GDP crisis indicator
### 4. Interactive Dashboard
- **5 Pages**: Overview, Country Analysis, ML Predictor, Projections, Comparisons
- **Real-time Visualizations**: Plotly interactive charts
- **User-Friendly Interface**: Streamlit web application
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## 📊 Key Findings
### High-Risk Countries (ML Risk Score > 90%)
- 🔴 **Nigeria**: 98.5% risk, extreme fiscal stress
- 🔴 **Egypt**: 98.2% risk, large deficits
### Moderate-Risk Countries (Risk 40-60%)
- 🟡 **Togo**: 51.7% risk, 67% debt-to-GDP
- 🟡 **Ivory Coast**: 48.6% risk, manageable with reforms
### Top Risk Predictors (Feature Importance)
1. **Revenue-to-GDP Rolling Average** (48.4%) - Most critical factor
2. **Inflation Rate Volatility** (6.2%) - Early warning signal
3. **Trade Balance …