The African Development Bank considers the continent’s debt to be one of the most important reasons for hindering its growth potential
Abidjan, April 22 / WAM / The President of the African Development Bank, Akinwumi Adesina, said that the African continent’s external debt is one of the most important reasons for obstructing its enormous growth potential and affects the future of countries.
Adesina explained, in a statement today, that the inflation of Africa’s external debt reached $824 billion, with countries allocating 65% of their gross domestic product to service these obligations. He indicated that the continent will pay $74 billion in debt service payments this year alone, which is a sharp increase. From $17 billion in 2010.
He called for the need to address structural issues in the debt landscape in Africa amid the financial pressures facing African countries due to the Corona pandemic, infrastructure needs, and high inflation.
He criticized the so-called “Africa premium” that countries of the continent pay when accessing capital markets, despite the fact that data show that default rates in Africa are lower than default rates in other regions… calling for an end to this perception of risks, which… It is believed that it leads to higher borrowing costs for African countries.
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