Rédaction Africa Links 24 with Ghanaian Times
Published on 2024-04-05 15:35:00
Adebayo Olukoshi, a professor of governance at the University of Witwatersrand in South Africa, recently urged African leaders to come up with innovative solutions to generate revenue in order to break the cycle of debt distress on the continent. He emphasized that such innovative solutions can only be achieved if leaders have the political will to lift their countries out of the perpetual debt situation.
In a conference held in Accra on Africa’s debt crisis and international financial architecture reform, organized by the International Development Economics Associates (IDEAs) in collaboration with the African Forum and Network on Debt and Development (AFRODAD), participants from various backgrounds such as political scientists, academics, economists, policymakers, and civil society organizations (CSOs) gathered to discuss the pressing issue.
Professor Olukoshi highlighted the findings of a 2023 report by the International Monetary Fund (IMF), which revealed that more than half of Sub-Saharan Africa’s low-income countries were at high risk or already in debt distress. Countries like Ghana, Malawi, Nigeria, Ethiopia, and Zambia were mentioned as implementing loan-support programs with the IMF and undergoing debt restructuring processes, leading to an increase in debt ratios from 30 percent in 2013 to nearly 60 percent in 2022.
He stressed the need for a strong political awakening to address the debt problem and steer the continent towards debt sustainability and economic stability. Emphasizing the abundance of human and natural resources in Africa, he urged leaders to break away from the reliance on loans and focus on increasing productivity and regulating the export of resources to the rest of the world.
Charles Abugre, the Executive Director of IDEAs, acknowledged the challenges faced by countries like Ghana in dealing with debt crises despite past initiatives like the Multilateral Debt Relief 20 years ago. He underscored the importance of good political and bureaucratic leadership in addressing these debt challenges and expressed optimism that the conference would provide a platform to learn from past experiences, restructure debt to prevent insolvency, and develop alternatives to external support programs for debt sustainability.
In conclusion, breaking away from the cycle of debt distress in Africa requires strong leadership, innovative revenue generation strategies, and a shift towards economic sustainability. The conference serves as a crucial platform for stakeholders to collaborate and explore solutions to address the pressing debt crisis in the continent.
Read the original article on Ghanaian Times
