“If the debt suspension initiative is applied as a general blanket solution, it risks costing African countries much of the hard won gains many have achieved over the past 15 years.”
“Uganda’s President Yoweri Museveni has called on international creditors to cancel all of Africa’s debts to ease the economic distress caused by the outbreak of the novel coronavirus.”
The post-pandemic world will be a less forgiving one, writes Professor Danny Leipziger on African debt distress in the wake of COVID-19.
“”Zimbabwe, locked out of coronavirus-related aid programs because of debt arrears, has thrown itself at the mercy of organizations including the International Monetary Fund. It has received no response.””
“As the pandemic wreaks havoc on economies and public finances, the natural question is: who’s next? More than 100 countries, including South Africa, have asked the imf for help.”
“Economic conditions in a number of African countries are worsening by the day. Lockdowns and a plummet in global commodity prices brought on by the COVID-19 pandemic have led to severe economic repercussions across the continent. At the same time, Africa’s estimated $400 billion of debt is weighing on policymakers’ ability to devote more resources to combat the worsening public health crisis in their countries.”
“The article looks at how governments and private sector companies in the region continue to pursue major economic projects across key sectors, while addressing the challenges they are facing in light of the COVID-19 pandemic.”
“Immediate and forceful action on debt will prevent a humanitarian disaster today and shore up our economy for tomorrow. We need to immediately divert resources from servicing debt toward responding adequately to the pandemic. We need to impede a temporary health crisis from turning into a chronic financial meltdown that could last for years, even decades.”
“Pressure is ramping up on the multilateral development banks (MDBs) to act on debt relief… As the largest provider of finance for the world’s poorest countries, the International Development Association (IDA) is in the hot seat. IDA has roughly $155 billion in outstanding loans (43 percent of which are to African countries). But the World Bank has so far resisted calls for a broad-based payments standstill for its IDA borrowers. We believe that this is the right posture for now.”
“Media reports suggest Mombasa could soon be transferred to the ownership of China as collateral for unpaid Kenyan debt. Likewise the United Arab Emirates (UAE) could gain control of Port Sudan.”
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