…Zambia has successfully applied for debt restructuring deal, Ghana, Ethiopia, Sri Lanka have so far officially defaulted on their national debt, says African Forum and Network on Debt and Development
By BUUMBA CHIMBULU in Dakar
SEVERAL African countries are currently showing signs of either defaulting on their national debt or needing to apply to the G20 Common Framework, an indication of mounting debt stress the continent is going through.
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Five countries, Zambia, Ghana, Ethiopia, Chad and Sri Lanka have officially defaulted on their national debt, with Zambia successfully applying for debt restructuring deal under the G20 framework, a deal which is yet to be completed.
The development of more countries indicating debt default or the need to apply to G20 Common Framework has worried the African Forum and Network on Debt and Development (AFRODAD) Board Chair, Barbara Khalima-Phiri, who said these countries were paying the price of irresponsible borrowing.
She expressed concern at the on-going third African Conference on Debt and Development (AfCoDD III) in Dakar yesterday that more countries on the continent were under debt trap.
The conference, being held under the theme “The 4Rs for Africa Rule-Maker: Reimagining, Rethinking, Reorganising, and Remobilising for an African World Order ” aims to foster innovative ideas and strategies that redefine Africa’s role in the global financial architecture and drive the continent towards a sustainable and equitable future,”
At the conference, Ms Khalima-Phiri said: “Several countries on the continent have shown signs of wanting to apply for G20 common framework. Africa’s debt burden is directly becoming a burden on Africans who are having to pay the price both irresponsible borrowing and equal irresponsible lending.”
She, however, said the AfCODD III conference was timely as experts had gathered to brainstorm on the debt could be managed on the African continent.
Speaking earlier, Trust Africa Executive Director, Ebrimall Sall called for urgent home-grown solutions to tackle debt in African countries.
Dr Sall emphasised the need for African countries to quickly strategise on solutions that would foster economic transformation for the continent.
“A number of African countries are in deep dent distress and this needs transformation process for better future. This also calls for solutions that have to be pan African for us to have lasting solutions to debt,” he said.
And Daonda Sembene, AfriCatalyst Managing Director said the conference was timely as most African countries were currently facing debt challenges.
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