China must do more to ease the debt burden on Africa according to Ghana’s Finance Minister, Ken Ofori-Atta

Ghana’s Finance Minister, Ken Ofori-Atta has said that China must step up to ease the debt burden on African countries whose economies have been affected due to the COVID-19 pandemic.

Ken Ofori-Atta, Finance Minister

His call is coming even though Africa is currently not the worst hit continent by the pandemic.

However, affected African countries already fear the economic impact of the pandemic putting about 20 million jobs at risk.

“My feeling is that China has to come on stronger,” Mr Ofori-Atta said in a conversation with the president of the Washington-based Center for Global Development Masood Ahmed, that was posted on the think-tank’s website.

“African debt to China is $145 billion or so, over $8 billion of payments is required this year … So that needs to be looked at,” Mr Ofori-Atta said.

African governments need about $100 billion in assistance and support for a moratorium on all debt and some debt write-offs.

Mr Ofori-Atta is now the chair of the Development Committee – a ministerial-level forum that advises the World Bank and the International Monetary Fund (IMF) on development issues.

He indicated that African countries were looking for means to raise their Special Drawing Rights (SDR), a form of foreign exchange reserves managed by the IMF, to shield against commercial debt defaults.

“This should not happen. So we should find a way to increase SDRs or for the Europeans to offer their SDRs as a way out,” Mr Ofori-Atta said.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Here are the top 10 cities in Africa where the most rich people live

Here are the top 10 cities in Africa where the most rich people live

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

5 African countries with the cheapest gas prices in 2022

5 African countries with the cheapest gas prices in 2022

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job