The African Union (AU) calls for the creation of a single credit institution. AU Chairman Senegalese President Macky Sall says the current global credit rating is unfair to African countries.
The continent is looking for new and urgent funding options as the impact of the Ukraine conflict threatens to worsen when the catastrophic economic situation caused by COVID -19.
Senegalese President Macky Sall says some African countries will not be able to recover economically because a low credit rating reduces international trade and investment.
“The ratings cause problems in terms of perception of risk, which is greater than what is real, and this makes credit more expensive and therefore undermines our competitiveness.
He says Africa needs to reconsider its relationship with international financial institutions, which it sees as “arbitrary for Africa”.
President Sall adds: “We are not really talking about aid. We are talking about co-operation for Africa at least to improve these conditions for credit access and credit market access under the same conditions as are required for these developed countries.
The President was adding his voice to the Council of Ministers meeting here in Dakar. They are asking the International Monetary Fund (IMF) to give countries more time to repay their loans and also to stop the debt of others.
The meeting here also asks the International Monetary Fund to consider making new credit facilities available to Africa, which is specifically aimed at helping the continent with money fast.
The Union also calls on the International Monetary Fund to consider using a new loan facility for Africa specifically aimed at helping the continent to obtain liquidity in the near future. This is in addition to the requirement that Africa alone receive up to $ 650 billion in special drawing rights.
But even while pushing for external funding, the United Nations Economic Commission for Africa says COVID-19 and now the effects of poverty in Russia and Ukraine are increasing on the continent.
UNECA Executive Director Vera Songwe states: “We must increase and strengthen our domestic resources. How can we do that? we have already talked about it many times, but have not been able to achieve 30% of internal revenue. But now we see that there are opportunities with digitalization. We are talking about Egypt, Ghana, Zimbabwe, Mauritania, Burkina Faso – countries are already looking for the benefits of this digital economy.
And civil society demands that the finances sought be given priority to young people. Desire Assogbavi is the French-speaking African director of One Campaign.
“Every year between 9 and 12 million people enter the labor market on the continent, but only about 3 million fall under the existing institutions, so that the others end up unemployed or indecently employed, so it is important that ministers commit themselves to creating more jobs for Africans. “
Some representatives here are asking the African Union to press for membership of the G20 so that the continent can have a stronger voice in determining access to funding. But it is an idea that will need more support before it becomes a reality.
The African Union calls for a pan-African rating agency – SABC News
Source link The African Union calls for a pan-African rating agency – SABC News