Finance Minister Dr. Cassiel Ato Forson has warned that the high interest rates imposed on African debt are worsening the continent’s economic challenges and pushing many countries deeper into crisis.
Speaking in Accra after receiving a petition from the African Regional Organization of the International Trade Union Confederation (ITUC–Africa) and the Trade Union Congress (TUC) Ghana, Dr. Forson said African nations pay far more to borrow than other regions.
“Why should African countries borrow so expensively compared to Europe, America, and other parts of the world?” he asked, describing the situation as both unfair and unsustainable.
Africa’s total debt has now surpassed $1 trillion, with more than 20 countries already considered to be at unsustainable levels by the end of 2024.
Forson noted that high-risk premiums placed on African economies often drive-up costs, even when debt levels are not excessive.
“The problem is not only how much we owe, but how much of our revenue goes into servicing debt,” he explained. “Because we are borrowing so expensively, we may have little debt, but the cost of paying it back is unbearable.”
While calling for fairer treatment of African economies, the minister also urged governments on the continent to improve transparency and accountability in the use of borrowed funds.
Misuse of loans, he said, has weakened the case for debt relief and left countries trapped in repeated borrowing cycles.
“We can’t forever be asking for debt forgiveness if, when we get the debt, we misuse it,” Forson cautioned.
He appealed to civil society and labour groups such as the TUC to keep pressing governments to ensure loans are used wisely and in ways that directly benefit citizens.
Source: Myxyzonline.com
