How to reignite Africa’s growth and avoid the need for future debt jubilee
sourced from Brookings
In ancient times, debt jubilees were customary after wars or dramatic events. By wiping out debts, these jubilees sought to avoid polarization and social tensions. Today, the massive dislocations caused by the COVID-19 pandemic provide justification for the international community to countenance such a debt jubilee—especially for poorer countries, such as many of those in Africa.
Except for a few flashpoints, Africa has mainly been spared the type of massive sickness and death from the pandemic experienced by millions of people in Asia, Europe, and North and South America. Yet, Africa stands to incur the most serious economic and social consequences of the pandemic.
Both the International Monetary Fund (IMF) and the African Development Bank (AfDB) forecast a sharp decline in aggregate growth because of the global health crisis. Africa is set to experience its first recession in about two decades. When you take apart these aggregate forecasts and examine individual sectors, it becomes obvious why Africa stands to lose the most. Economies of the continent are heavily dependent on... to finish reading the article, click here