Where Credit is Due: How Africa's Debt Can Be a Benefit, Not a Burden

Format: Paperback / softback
Length: 240 pages
Publication date: 24 June 2021
Publisher: C Hurst & Co Publishers Ltd

Borrowing serves as a vital source of funding for governments across the globe, with the potential to either propel progress or halt it altogether. When governments mishandle their borrowing practices, debt crises can emerge, disrupting economic growth. However, when done correctly, borrowing can facilitate investment and lead to improved economic conditions.

In the context of African countries, the pursuit of calmer capital is driven by the aim to raise living standards and enhance the competitiveness of their economies. The African debt landscape has undergone a significant transformation in the first two decades of the twenty-first century. Following extensive debt relief, states have sought new borrowing opportunities from international capital markets and emerging global powers such as China. The composition of new debt has shifted, increasing risk factors, particularly in the face of the COVID-19 pandemic. Richer countries have accessed low-interest rates, while Africa has faced a substantial increase in indebtedness, resulting from expensive borrowing rates.

The growing debt burden has prompted calls from the G20 for the suspension of debt payments. However, the debt situation in Africa is complex, with debt owed to a diverse range of lenders. A new approach is required to address this challenge, which has the potential to transform crisis into opportunity. Urgent action by both lenders and borrowers is necessary to mitigate risk while preserving market access. Additionally, the strategic deployment of private finance can provide the necessary scale of investment required to achieve development goals and address the urgent climate emergency.

In conclusion, borrowing plays a pivotal role in financing governments and driving economic growth. African countries are seeking calmer capital to improve their living standards and enhance their competitiveness. The changing African debt landscape has increased risk factors, particularly in the context of the COVID-19 pandemic. A new approach is needed to address this complex debt situation, which should prioritize risk mitigation, market access preservation, and the strategic deployment of private finance to achieve development goals and address the climate emergency.

Weight: 384g
Dimension: 215 x 139 x 26 (mm)
ISBN-13: 9781787384750