African countries should tread carefully over the debt relief offered by multilateral institutions and other lenders. It could prove very costly in the medium to long term.
European Commission President Ursula Von Der Leyen and European Council President Charles Michel at the latest leaders’ summit.
EPA
The alarm being raised by multilateral financial institutions about rising government debt across Africa is exaggerated. The real problem is that African governments pay way over the odds for debt.
Sunset over Omo River valley in southern Ethiopia.
Flickr/Rod Waddington
The special EU summit held in Brussels on Wednesday revamped the discussion on Eurobonds (i.e. the issuance of common government bonds to pool the Eurozone debt liability) as a possible option to address…