Leaders push for new global financing model that fits Africa
L-R: Director of the Africa Investment Forum ChineloAnohu; Development Bank of Southern Africa Group Executive, Client Coverage Mohan Vivekanandan; Africa Finance Corporation President Samaila Zubairu, African Development Bank President Akinwumi Adesina; Africa50 Chief Executive Officer Alain Ebobissé; Trade and Development Bank Group Managing Director Admassu Tadesse; and Islamic Development Bank Group Acting CEO Hani Salem Sonbol. PHOTO | FILE
Rising interest rates, inflation and commodity shocks have raised the likelihood of an overlap of debt crises in Africa. The International Monetary Fund estimates that 30 percent of emerging markets and 60 percent of low-income countries could face difficulty paying their debts.
Additionally, there has been a marked change in the global credit landscape over the past decade, with China and private bondholders -- who are the main creditors for the low-income economies – making the traditional structures less effective for present-day debt challenges.
