The World Bank’s Africa chief economist, Andrew Dabalen, believes that the outlook for Africa’s debt sustainability remains “cloudy” as low growth and high inflation threaten the stability of many economies across the continent.
One of his main concerns was the possibility of stagflation taking hold.
According to him, growth is expected to reach 3.1% in 2023, while inflation in many parts of the continent is in the double digits.
According to a World Bank assessment, nearly half of the countries in Sub-Saharan Africa are in debt distress or are at high risk of becoming so.
“We don’t expect the number to grow beyond what we have now,” Dabalen said in an interview with Reuters.
He cautioned that changing global economic conditions continued to present risks to that outlook.
Dabalen said the Common Framework debt restructuring negotiations for Zambia “keep dragging on” and that the process should be equitable for all creditors.
According to him, several countries are taking the necessary steps to implement reforms that would better serve their long-term objectives.
Aside from these domestic reforms would always be superior to those imposed on them by international funders, he added.
He said a significant number of countries on the continent are in the unique position of having the mineral resources necessary for the low-carbon future.
By: Rainbowradioonline.com/Ghana
