Dr.Akinwunmi Adesina,the President of African Development Bank Group,has said that Africa’s economic recovery would hinge on securing equitable access to vaccines and developing solutions for debt distress.
He spoke at a roundtable event with IMF Managing Director Kristalina Georgieva; World Bank President David Malpass; OECD Secretary-General Ángel Gurría; World Trade Organization Director-General Ngozi Okonjo-Iweala; Inter-American Development Bank President Mauricio Claver-Carone.
“Africa needs debt relief, debt restructuring and debt sustainability,” he said, pointing out that in the absence of reallocations, low-income countries would receive only about 3.2% of special drawing rights.
He advocated the need for the formation of an African financial stability mechanism, modeled on the European Stability Mechanism, to provide jointly guaranteed emergency support.
He added:“The mechanism will provide a much-needed fiscal safety net for African economies and help to avoid regional spillover effects of countries falling into illiquidity and insolvency.”
Speaking,Dr.Ngozi Okonjo-Iweala,the Director-General of World Trade Organization,,said trade and debt sustainability are closely linked.
“By closing off export opportunities and lowering commodity prices, COVID-19 has worsened debt dynamics for many developing countries.”
She called on governments to “deliver results” at the WTO this year, to reinforce the rules of global trade and pave the way for low-income countries to earn foreign exchange earnings.
