Browsing: debt crises

• The AU Summit 2024 is taking place in Addis Ababa, Ethiopia.
• The AU Summit 2024 has brought together the Committee of Ten Heads of State and Government.
• Marking a historic first, the year dedicated to Education follows its endorsement at the 36th Ordinary Session of the Assembly of AU Heads of States.

Finance and economic experts from Africa have called on African leaders at the AU Summit 2024 to match unity speak with actions and step up regional integration efforts, as theselatex hood brock bowers jersey adidas yeezy boost 350 turtle dove custom stitched nfl jersey air max 270 women air jordan 1 element air max 270 women jordan proto max 720 borsa prima classe black friday wig sale asu football jersey asu football jersey luvme human hair wigs jock strap custom sublimated hockey jerseys are key to the continent’s agency and success in the push for debt reforms …

Public funds are seldom enough to fund developmental projects which is why many Africa countries have turned to debt.  Albeit the challenge with accumulating mounds of debt is the equal mounds of repayment obligation with the added inconvenience of interest accrual. 

The fluctuations in commodity prices which African countries rely on have not helped the situation. Data from the IMF indicates that 20 of the 54 countries in Africa are already in or headed towards distress. 

With the rising number of countries going towards the red zone, it is certainly a nerve-wracking fact for Africa.

COVID-19’s Impact on African Debt 

The arrival of coronavirus on the continent caused much alarm; rightfully so, given the devastation on health and the economy around the wealth. The transmittal effect of world economic standstill, recession, and local lockdowns heavily damped economic activity. 

One of the major risk factors that the heavily indebted African countries …

China Development Bank

The Zambian government announced an agreement with the China Development Bank (CDB) to defer a loan repayment that fell due in October 2020.  The terms of the deal include a halt on interest payment for six months, with payment of interest expected to resume in April 2021. The principal due was also postponed and will be rescheduled over the entire loan period. Chinese lenders are not known for their flexibility which is why the deal comes as a welcome shock.

I’m glad to learn that China Development Bank has reached a debt deferral agreement with Zambia. This fully shows that in addition to official creditors, other Chinese financial institutions are also actively resolving the debt issue of Zambia and other African countries.

Wu Peng, Director-General, Department of African Affairs, MFA, China on Twitter

 

The government did not, however, disclose the size of the debt or the …