African Central Bank governors bemoan continent’s high borrowing costs
African central bank governors have expressed concern over the continent's rising borrowing costs, stating that the current rate of development is unsustainable for efficient growth.The governors, who are advocating for sharply lower borrowing costs, have stated that they will submit their viewpoint at the World Bank and International Monetary Fund's upcoming annual meetings. They are also advocating for the adoption of a single African viewpoint, according to The Punch.
Dr James Garang, Governor of the Bank of South Sudan and Chair of the East African Community's Monetary Affairs Committee, stated this in an interview with journalists on the sidelines of the 2024 African Caucus Meeting, which took place on Friday in Abuja.
The African Caucus was established in 1963 to offer African governors a stronger voice in Bretton Woods Institutions on development problems relevant to Africa.
According to CBN International Payments Data, the FG spent the most on debt financing in May, at $854.36 million, which is also the biggest amount paid in a single month in the previous year.
Speaking on the theme of equitable financing, which is shared by African Central Bank Governors, Garang highlighted that the meeting needs to focus on fair financing choices, given the continent's potential.
He stated, "Equitable financing is one of the issues that will be addressed in both the memorandum and the declaration." There is a need to restructure the global financial infrastructure.
"It centers around numerous things, but I'll just mention three. One is the need to cut borrowing costs and increase access to finance, as well as to harmonize policies and guarantee that African views are heard at the table.
"This is what we heard before, when Ambassador Amina Mohammed mentioned the G20. Also present was the EU Commission's Ambassador Albert Muchanga. They were discussing what could be done to ensure that Africa is represented at the table where decisions regarding global financial architecture are made. So these are some of the topics that will be discussed in the memorandum.
He also stated that the forum will focus on energy access while seeking backing from international lenders.
He emphasized that the African Central Bank governors were concerned about the growing youth population and that a strategy will be implemented to address this issue.
"The governors are quite concerned about the current level of unemployment in the region and on the continent. The memorandum will include a portion focusing on enhancing youth employment and opportunity across the board, since we have not seen this in just one country. The governors are highly conscious, and they will ensure that programs aimed at youth employment are addressed.
"Of course, the other two issues will be related to energy access. And this is where the African Development Bank and the World Bank are taking the lead in supporting the continent," the governor stated.
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