- Despite Challenges, Africa’s Debt is Still Under Control –AfDB
Despite challenges, Africa’s debt is still under control, the African Development Bank said during its Annual Meetings in Malabo, Equatorial Guinea on Thursday.
This was disclosed during a panel session which was led by the Bank Group’s Treasurer, Hassatou N’sele, and Director of Service Delivery, Performance Management and Results at the Bank, Simon Mizrahi.
Mizrahi said, “On debt sustainability, Africa’s debt has increased in recent years but not to unsustainable levels.”
He indicated but he pleaded for caution.
“We need to continue to generate financing and spur growth without increasing debt,” Mizrahi said.
AfDB said it remained strong with growing operating revenues and allocable income generated since 2010 reaching $2.5bn.
In 2018, the bank earned $214m in allocable income, 48 per cent of which had been reinvested in the institution to reinforce reserves and its business growth capacity.
The bullish numbers were revealed during the bank’s financial presentation Thursday.
AfDB said the bank could chart a new path on account of its ability to raise funds on the capital markets.
“The amount of infrastructure financing covered by private sector could double if African countries harnessed the full potential of their capital markets.”