BY MFANUFIKILE KHATHWANE
MBABANE– Africa growing debt burden has prompted Eswatini to call for a review of the rules governing how African countries borrow money, warning that the continent’s development will remain slow if the current lending system is not reformed.
Minister of Finance Neal Rijkenberg made the call during a conference of African countries held in Côte d’Ivoire last week. The meeting brought together leaders and policymakers to discuss Africa’s economic future under the conference theme.
“The rules governing loans to African countries should be reviewed to ensure that interest rates are fair and do not place an excessive repayment burden on borrowing nations,” he said.
Hon. Neal Rijkenberg said many African countries were paying high interest rates on loans, leaving governments with limited resources to invest in development. He said the legal framework governing how African countries access and repay loans should be reviewed to ensure borrowing terms are fairer.
He warned that rising debt continued to consume a significant share of national budgets, crowding out investment in key sectors such as healthcare, education, infrastructure and industrial development.
“If the rules governing how African countries borrow and repay loans are not reviewed, Africa will continue to fall behind in development,” he said.
Rijkenberg added that fairer lending conditions would enable governments to direct more resources towards improving the lives of their citizens instead of spending a large portion of their budgets on debt repayments.
Also speaking at the conference, Minister of Natural Resources and Energy, His Royal Highness Prince Lonkhokhela, said Africa’s economic growth remained below its full potential. He noted that the continent recorded economic growth of between four and five per cent last year compared to other regions of the world.
He also said Africa was not exporting enough value-added goods and called for greater efforts to strengthen trade, industrialisation and mineral beneficiation across the continent.
“As those responsible for trade, industry and minerals, our message is simple: financial institutions must ensure that capital supports the building of factories, roads and other infrastructure, unlocks the value of our natural resources and creates jobs,” said Prince Lonkhokhela.
The conference focused on identifying practical solutions to strengthen African economies, improve access to affordable financing and promote sustainable development across the continent.
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(Courtesy Pic)
