He however said the bank took prompt actions to African economies with the launch of a $3bn social impact bond on global capital markets, “which was at the time the largest ever US denominated social bond in world history. We announced a $10bn Crisis Response Facility. We provided $28m to the Africa Centres for Disease Control and Prevention. We saved lives and livelihoods.”
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With an average projected GDP growth of 3.4 percent in 2021, he said the continent was recovering.
He stated that to tackle Africa burgeoning debt, it has launched a Debt Action Plan and a new Strategy for Economic Governance in Africa and both would support countries to tackle debt, and embark on bolder economic governance reforms to forestall a debt crisis.
The Managing Director of IMF, Kristalina Georgieva, said the global economy is projected to grow by 6%, but half of 3.2% would come from Africa.
She added that public debt in sub-Saharan Africa has risen 6% to 58% of GDP in 2020 which is the highest in almost two decades.
She said interest payments reached 20% of tax revenue last year in the region and exceeded one-third of revenue in some countries with public debt in North Africa rising by 12% to 88% of GDP last year.
