Speed Is What We Need, Indebted African Govts Tell Creditors

African governments on Saturday urged creditors to speed up debt relief, saying delays were limiting growth on a continent facing an array of challenges, from high inflation to food insecurity, IgbereTV reports 

Speaking at an online International Monetary Fund (IMF) press conference, Zambian Finance Minister Situmbeko Musokotwane said debt relief was a “vital aspect” of bringing the world economy “back to normal”.

“Our ability to participate in the global economy is constrained,” Musokotwane said.

“All we can do is to urge our partners, the creditors, to see this as a matter of urgency. That’s what we’re pleading for. Speed, speed, speed is what we need.”

In 2020, as the Covid-19 pandemic battered Africa, Zambia became the first country on the continent to default on its foreign debt, estimated at $17.3 billion.

The G20 has agreed on a “common framework” for debt restructuring for the poorest countries but implementation has been slow.

On Friday, US Treasury Secretary Janet Yellen accused China — the main creditor to many African nations — of “not participating constructively” and obstructing efforts to provide debt relief.

Zimbabwean Finance Minister Mthuli Ncube told the IMF panel that Yellen’s calls for a greater Chinese involvement were “appropriate”.

“We are going into a very tough time globally,” he said.

“We don’t want indebtedness to hold back the growth of African countries, just because creditors are too slow to do the right thing