Africa can only attract development finance with sustainable debts – Seth Terkper

Seth Terkper, a former Minister of Finance, has urged African governments to strive to make their debts sustainable to attract development finance assistance.

He explained that because many African countries have reached lower and middle-income status, they could no longer rely on grants and concessional financing for sustainable development and poverty alleviation.

As such, development finance would be supportive going forward, hence, the need for African governments to assiduously work towards resolving their debt burden.

In its April 2024 Regional Economic Outlook for Sub-Saharan Africa, the IMF observed that after four turbulent years, the region has seen some gradual improvement.

The report indicated that governments in the region continued to grapple with financing shortages, high borrowing costs, and impending debt repayments, which ought to be dealt with.

“Amid these challenges, sub-Saharan African countries will need additional support from the international community to develop a more inclusive, sustainable, and prosperous future,” the report noted.

Regarding policies policy priorities, Mr Abebe Aemro Selassie, African Department, IMF, said it was important for African governments to continue to improve public finances, with an emphasis on domestic revenue mobilisation.