• Home
  • Radio
  • TV
  • Advertisement
  • Disclaimer
  • Public Notice
    • Opinion
  • New Africa Business News
  • Contact
  • Log In
facebook
    • News
    • Business
    • Video
    • Entertainment
    • Sport
    • Jobs
    • Government
    • Immigrants
    • Investment
    • Gallery
      • Animal
      • Africa Map
    • NGO
    BREAKING NEWS
    East African Community Unveils Bioeconomic Strategy for the next Decade
    Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent’s Food Security
    Ghana & Nigeria to Improve Cross-Border Trade
    Tanzania Seeks to Reach New Record Cashew Production by 2025
    Nestle Nigeria Capitalized Rural Women to enable Financial Capacity and boosting Standard of Living
    World Trade Organization published…Trade plays an Important facet in Access to Medical, Goods and Services
    African Development Bank Group President Calls for More Partnerships to Build Africa’s Social Infrastructure
    Ghana, Key Stakeholders: Sign a Renewable Energy Agreement Worth US$69.88 Million to Improve Access and Socio-Economic Development
    Africa Development Bank Approves $1.5 Billion Facility to Counter Food Crisis on the Continent
    Sh32 Billion of Phase 2 of Second Container Terminal of the Kenya Ports Authority at the Port of Mombasa is finished off and…commissioning in June of 2022

    Debt Sustainability is Essential for Meeting the SDGs in Africa

    Posted On 03 Aug 2019
    By : New Africa Business News, Staff Correspondent
    Comment: 0

    By Abdul Rahman Suagibu –

    African Central Bank Project
    Photo Credit: African Union

    NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- The ECA Executive Secretary – Vera Songwe, told African Central Bank Governors that concerns around Africa’s rising sovereign debt should not focus so much about its level, both rather the ability to pay for it. Elaborating on this point, she emphasized that managing debt dynamics well is all about implementing good fiscal policy which in turn is linked to effective monetary policy.

    Songwe was speaking at the 42nd Annual Meeting of the Association of African Central Banks held on 31st July in Kigali. The theme of the meeting was Rising African Sovereign Debt Implications for Monetary Policy and Financial Stability.

    “When we talk about increasing Africa’s sovereign debt immediately people worry that we are overspending. But it is not only about the level of debt but about the capacity to pay”, Songwe highlighted. She pointed to Rwandan as an example of fiscal prudence: “Rwanda shows what good management looks like – with a relatively low share of revenue dedicated to serving debt. Just a decade away from the Sustainable Development Goals endpoint, economic growth on the continent is still far below the required levels. This period of relatively easy access to capital, due to the prevailing low interest rates in high income countries, had not necessarily translated into additional growth for African countries”, she stressed.

    Edouard Ngirente – Rwanda’s Prime Minister who inaugurated the meeting, said that the act of borrowing itself is not inherently bad but called for ideal debt management. “Debt can foster economic growth, and borrowing responsibly, maximizing our returns on investments and managing our debt is key to keeping debts levels sustainable”, he noted.

    Songwe cited estimates suggesting that Africa needs $ 614 billion and $ 638 billion per year to meet its development goals, while for the funds needed to implement the 2030 Agenda across all low and lower middle income countries totals $ 1.2 trillion per year. “When you have poor fiscal management, increasing the debt threshold is not a solution”, she cautioned.

    Songwe said that the conversation about debt should avoid being alarmist – but we should look at the two sides of the story: those countries already in debt distress and those that are doing well today, but at the same time are ratcheting up higher levels of debt because of their wishes to reach the SDG 2030 Goals.

    Addressing Africa’s financing gap, the recent ECA Economic Report on Africa 2019 urges countries to adopt appropriate fiscal policies, recommending strategies such as improving the mobilization of non-tax revenue, leveraging the use of information technology and digitization and strengthening policies that tackle tax evasion.

    Central Bank Governors meeting in Kigali concurred that there is a negative link between increasing public debt irresponsibly and sustainable growth. They asserted that debt repayment could hinder the future ability of some governments to fund development of expenditure.

    For New Africa Business News Abdul Rahman Suagibu Reports,  Africa Correspondent

    Facebook: newafricabusinessnews.com

    Email: Info@newafricabusinessnews.com

    AFRICA’S MOST READ AND FASTEST GROWING GLOBAL NEWSPAPER – www.newafricabusinessnews.com

     

    NEW AFRICA BUSINESS NEWS
    COMING SOON ADVERTISING OPPORTUNITY WITH AFRICA’S FASTEST GROWING GLOBAL ONLINE NEWSPAPER. THANK TO COMPANIES THAT WANT TO ADVERTISE.   INFO@NEWAFRICABUSINESSNEWS.COM.

     

    About the Author
    New Africa Business News Staff Correspondent
    • google-share
    Previous Story

    Access Bank Partners ICSA to Host 2019 Digital Banking Summit in Accra

    Next Story

    Rwanda has not Closed Border with DRC- Health Minister

    Leave a Reply Cancel reply

    *
    *

    Members Area

    • Members Log In

    RECENT

    POPULAR

    COMMENTS

    East African Community Unveils Bioeconomic Strategy for the next Decade

    Posted On 29 Jun 2022

    Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent's Food Security

    Posted On 24 Jun 2022

    Ghana & Nigeria to Improve Cross-Border Trade

    Posted On 21 Jun 2022

    New Africa Business News, Person of the Year 2021-2022, Goes to African Women

    Posted On 29 Jan 2022

    New Africa Business News Award Medalist of Excellence as Africa's President of the Year 2020-2021 meets the Heads of his Ancestors on March 17th, 2021 Samia Suluhu Hassan divulged

    Posted On 20 Mar 2021

    New Africa Business News, Person of the Year 2020-2021, Goes to Dr. Arikana Chihombori Quao

    Posted On 01 Jan 2021

    Thanks for reading, Africa’s fastest...

    Posted On 27 Apr 2022

    Thanks for reading, Africa’s fastest...

    Posted On 27 Apr 2022

    Thanks for reading, Africa’s fastest...

    Posted On 27 Apr 2022

    Facebook

    Latest Posts

    East African Community Unveils Bioeconomic Strategy for the next Decade

    Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent's Food Security

    Ghana & Nigeria to Improve Cross-Border Trade

    Recent Posts

    • East African Community Unveils Bioeconomic Strategy for the next Decade
    • Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent’s Food Security
    • Ghana & Nigeria to Improve Cross-Border Trade
    • Tanzania Seeks to Reach New Record Cashew Production by 2025
    • Nestle Nigeria Capitalized Rural Women to enable Financial Capacity and boosting Standard of Living

    Categories

    • Business
    • Education
    • Entertainment
    • Featured
    • Government
    • Immigrants
    • Investment
    • News
    • NGO
    • Obituary
    • Opinion
    • Public Notice
    • Sport
    • Video

    Tag Cloud

    african economy business africa

    Contact Form

    1. Name *
      * Please enter your name
    2. Email *
      * Please enter a valid email address
    3. Message *
      * Please enter message
    Copyright 2019 New Africa Business News, Inc. A Global International Company, Inc. All Rights Reserved.