Africa’s alarming debt causes tension between World Bank and lenders

Africa’s alarming debt causes tension between World Bank and lenders

- The World Bank and the International Monetary Fund have expressed concerns about rising debt levels in Sub-Saharan Africa

- They have also raised concerns about China's influence in key areas in Africa's infrastructural projects

- The World Bank also indicated that there is a lack of transparency in China's dealings in Africa

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Briefly.co.za has learned that Africa’s debt is increasing is causing a rift between the World Bank and other lenders.

The World Bank reports that Sub-Saharan Africa’s total external debt increased by 150% to $583 billion in 2018 from $236 billion 10 years earlier.

Per a report by qz.com, there are fears about rising unsustainable debt as the average public debt increased from 2010-2018 by 40% to 59% of gross domestic product (GDP).

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The International Monetary Fund and the World Bank have expressed worry about the lack of transparency, weak debt management and a lack of capacity in an increasing number of low-income countries as the average public debt increased from 2010-2018 by 40% to 59% of the GDP.

They have also raised concerns about China’s influence in Africa with regard to sources of capital.

This comes in the wake of offers of convenient packages of funding through state-owned enterprises.

This often leads to the availability of funds for much-needed infrastructure projects across the continent.

According to David Malpass, president of the World Bank, this comes at a time when there is a lack of transparency.

Africa’s rising and unsustainable debt causes tension between World Bank and lenders

Source: qz.com
Source: UGC

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Source: Briefly.co.za

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