Analysis-North Africa backslides toward swirling debt troubles

FILE PHOTO: Supporters of Tunisia's President Kais Saied carry national flags and banners during a rally to demonstrate their support for him in Tunis, Tunisia March 20, 2023. REUTERS/Jihed Abidellaoui/File Photo

LONDON (Reuters) - Tunisia and Egypt are edging closer to major debt crises which could suck in a volatile North Africa region and pose tough choices to wealthy Gulf Arab neighbours, investors and analysts warn.

The countries are already being challenged by shortages of essential goods and financial market dysfunction and in Tunisia's case, a political crisis caused by President Kais Saied's consolidation of power and crackdown on opponents.