The Director-General of the World Trade Organisation (WTO) Dr. Ngozi Okonjo-Iweala, President of the African Development Bank (AfDB), Dr. Akinwunmi Adesina and other regional economic stakeholders, yesterday, expressed concern about rising national debts, warning that majority of countries in the continent to face a high risk of falling into a debt trap.
They expressed their concerns during the ongoing African Development Bank Group’s 2021 Annual Meetings, warning African political leaders to explore other funding options and scale up debt management transparency. The experts observed that majority of the countries are grappling with sustainability just as debt servicing has become a major burden on the regional economy.
Okonjo-Iweala observed that the current debt burden pre-dated COVID-19 but was worsened by the pandemic. Noting that “prevention is better than crisis management”, she warned that Africa could not afford to fall into a debt trap again.