Africa continues to face complex challenges due to elevated debt distress, persistent funding squeeze – Dr. Addison

Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has indicated that Africa continues to face complex challenges against successive shocks, manifesting in a subdued post-pandemic recovery, elevated debt distress, and a persistent funding squeeze.

According to him, these have amplified income divergences and undermined sustainable and inclusive growth achievement.

Dr. Ernest Addison made these statements when he delivered a speech at the IMF headquarters building, Washington, D.C, USA, on Tuesday, April 16.

In his address on the theme “Bolstering Africa’s Financing through the Overlapping Crises and Beyond”, Dr. Ernest Addison called for meaningful collaboration between the IMF and the World Bank to better align their support to Low-Income Countries (LICs).

The BoG Governor further stressed the need to coordinate the IMF’s LIC Facilities Review with the World Bank’s IDA21 replenishment efforts to support LICs holistically.

On behalf of other African Governors, Dr. Ernest Addison requested additional enhancements to the G20 Common Framework while leveraging the Global Sovereign Debt Roundtable (GSDR) to promote rapid, transparent, and equitable resolution of debt as well as facilitate debt cancellation for the most vulnerable members.

“The review of the Fund’s internal debt policies is welcome, but we stress the need to ensure that the changes are impactful and achieve their intended purpose,” Dr. Addison said.