“In the face of this pandemic, we must put lives above resources and health above debt. Why? Because developing economies are the most vulnerable at this time. Our remedies must go beyond simply lending more. We must go the extra mile and provide countries with much-needed and urgent financial relief and that includes developing countries under sanctions. Our estimates indicate that Africa’s total public debt could increase, under the base case scenario, from $1.86 trillion at the end of 2019 to over $2 trillion in 2020, compared to $1.9 trillion projected in a ‘no pandemic’ scenario. According to a March 2020 Bank report, these figures could reach $2.1 trillion in 2020 under the worst case scenario. This, therefore, is a time for bold actions. We should temporarily defer the debt owed to multilateral development banks and international financial institutions. This can be done by re-profiling loans to create fiscal space for countries to deal with this crisis. We stand ready to support Africa in the short term and for the long haul. We are ready to deploy up to $50 billion over five years in projects to help with adjustment costs that Africa will face as it deals with the knock-on effects of Covid-19, long after the current storm subsides.” Akinwumi Adesina’s views come at a time when he has been accused by bank staff of multiple abuses and breaches of the bank’s code of ethics, charges he flatly denied.
AfDB President Calls for Sanctions to Be Lifted to Give African Economies a Fighting Chance
- AFRICA TOP 10
- 2 min read