- AFRODAD and SADC have joined hands to boost Africa’s debt sustainability by cushioning highly indebted countries.
- Between 2004 and 2018, 30 African countries signed natural resource-backed loans worth $66 billion.
- China has emerged as a critical player in debt owed by African States, with an increasing percentage of debt now in resource-backed loans.
Boosting Africa’s debt sustainability
The African Forum and Network on Debt and Development (AFRODAD) has entered into a debt sustainability pact with the Southern African Development Community Parliamentary Forum to cushion governments from debt distress.
The move aimed to bolster financial stability and debt management strategies across Africa, with the continent’s total external debt hitting $1.13 trillion in October last year.
Highly indebted African countries continuously face stark trade-offs between servicing expensive debt, supporting high and growing development needs, and stabilising domestic currencies.
Government debt has risen in at least 40 African countries over the past decade. …
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