UNCTAD reveals how rating agencies push Africa to pay more on loans
The United Nations Conference on Trade and Development Secretary-General Rebeca Grynspan (L) listens as Division for Africa Least Developed Countries and Special Programmes at UNCTAD Director Paul Akiwumi speaks during a press conference and launch of the Economic Development in Africa Report 2023 at Radisson Blu Hotel in Nairobi, Kenya on August 16, 2023. PHOTO | WILFRED NYANGARESI | NMG
African countries are paying eight times more in interest on loans than their European counterparts and four times more than the US on account of distorted assessments by global credit rating agencies, the United Nations has said.
The UN Conference on Trade and Development (UNCTAD) says the high cost of credit has resulted in countries in the continent, including Kenya, spending more to service the debts from rich countries than investing in key economic sectors.
