So far, five African
countries namely: 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 news of more
countries indicating debt default or the need to apply to G20 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 on Wednesday 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,
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.
The conference, she
stated, would gather solutions that would assist the African continent to reset
its economies and pursue economic transformation agenda.
Speaking earlier,
Trust Africa Executive Director, Ebrimall Sall called for urgent home-grown
solutions to tackle debt in African countries.
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.
Daonda Sembene,
AfriCatalyst Managing Director said the conference was timely as most African
countries were currently facing debt challenges.