Economy

AfDB clarifies Africa’s debt

Published

on



AfDB clarifies Africa’s debt

Debt

Abuja, 13, 2020 The African Development Bank (AfDB) has clarified the debts incured by Africa.

AfDB made this known in a statement by its Communication and External Relations Department on Thursday.

It explained that the World Bank, with a more substantial balance sheet, had significantly larger operations in Africa than the AfDB.

According to the bank, the World Bank’s operations approved for Africa in the 2018 fiscal year amounted to 20.2 billion dollars compared to 10.1 billion dollars by AfDB.

“With regard to Nigeria and South Africa, the World Bank’s outstanding loans for the 2018 fiscal year to both countries stood at 8.3 billion dollars and 2.4 billion dollars, respectively.

“In contrast, the outstanding amounts for the AfDB Group to Nigeria and South Africa were 2.1 billion dollars and 2.0 billion dollars, respectively, for the same fiscal year,” it said.

The bank was reacting to a report credited to the World Bank’s President, David Malpass, who said Multilateral Development Banks, including the AfDB, had a tendency to lend too quickly and in the process, add to the continent’s debt problems.

The AfDB faulted the claim and described it as misleading, inaccurate and not fact based.

The bank noted that such report undermines its integrity and governance systems, and by incorrectly insinuated that it operated under different standards from the World Bank.

It stated that such notion went against the spirit of multilateralism and collaborative work between the banks.

“For the record, the AfDB maintains a very high global standard of transparency. In the 2018 Publish What You Fund report, our institution was ranked the 4th most transparent institution, globally.

“The Bank provides a strong governance programme for our regional member countries that focuses on public financial management, better and transparent natural resources management, sustainable and transparent debt management and domestic resource mobilisation.

“We have spearheaded the issuance of local currency financing to several countries to mitigate the impacts of foreign exchange risks, while supporting countries to improve tax collection and tax administration.

“As well as leveraging pension funds and sovereign wealth funds to direct more monies into financing development programmes, especially infrastructure.

“The AfDB Legal Support Facility (ALSF) supports countries to negotiate terms of their royalties and taxes to international companies, and terms of their non-concessional loans to some bilateral financiers. We have been highly successful in doing so,” it explained.

The bank said its 2020 African Economic Outlook, at the end of June 2019, put total public debt in Nigeria amounted to 83.9 billion billion, 14.6 per cent higher than the year before.

It stated that the debt represented 20.1 per cent of GDP, up from 17.5 per cent in 2018.

It added that of the total public debt, domestic public debt amounted to 56.7 billion dollars while external public debt was 27.2 billion dollars which represented 32.4 per cent of total public debt.

The bank disclosed that South Africa’s national government debt was estimated at 55.6 per cent of GDP in 2019, up from 52.7 per cent in 2018.

The AfDB noted that South Africa raised most of its funding domestically, with external public debt accounting for only 6.3 per cent of the country’s GDP.

The Bank reiterated its commitment to continue to play critical roles in development efforts and in the aspirations of developing countries, most especially in Africa.

Edited By: Muhammad Suleiman Tola

https://nnn.ng/afdb-clarifies-africas-debt/

Icardi double gives PSG 2-0 win at Reims Ronaldo double earns point for Juventus at Roma Messi back in scoring business in dream start for Koeman Ajibade, Azeez win Asiwajuniwa Cycling Tournament KDSG advises civil servants against strike Paris knife attack suspect says he was targeting Charlie Hebdo – Police source Congolese security forces thwart rebel attempt to seize mining hub 171 millionaires emerge in Dangote Cement Promo President Buhari greets Onabule at 81 Oba Oniru wants LASG to recognize “Isese Day” Onyeama calls for peace in Enugu APC World Tourism Day: NCF showcases Nigeria’s rich conservation park‍  I-G condemns attack on security convoy in Borno 2020/2021 Legal Year: Clergy tasks judges on justice, fight against corruption FG applauds CAN’s roles in nation building Bankers institute re-certifies NDIC academy as training provider for banking industry Post COVID-19: Expert proffers strategies for business revival Vardy’s hat-trick inspires Leicester City to 5-2 win over Manchester City Community repatriates 43 Nigerian women stranded in Lebanon Electricity: Ojota community protests ‘crazy’ bills, disconnections LASG says MSMEs key to economic recovery  Valentino picks Milan over Paris for rare live fashion show 60th Independence: Sanwo-Olu urges citizens to rededicate to nation’s unity In Paris, a fashion eco-system on edge as shows disappear French Open: Wawrinka thrashes Murray as big match falls flat 13 B/Haram terrorists, 23 family members surrender to troops in Borno -DHQ Malami donates N11m to Kebbi flood victims Jos airport renovation 95 per cent completed – Manager FG mulls policy on zero rating for educational websites Tourism Day: Nigeria to leverage on tourism to boost grassroots devt.- Minister Buhari’s policies yielding fruitful results – Gov Bagudu Ministry to create platform for lifting 100m Nigerians out of poverty Oil palm growers commend Buhari, CBN for empowering small holder farmers Nigerians renew call on Multichoice, others on pay as you go tariff NIHOTOUR will work with private sector for sustainable development of tourism -Kangiwa Men like Justice Karibi-Whyte, difficult to find anymore -NBA President Gov. Wike describes late Karibi-Whyte as a super hero, incorruptible jurist Inter hits two late goals to beat Fiorentina 4-3 Beaten Betis coach Pellegrini blames VAR in defeat to Real Madrid COVID-19: Nigeria cases now 58,198 with 49,722 discharged Ministry official advocates regular dog vaccination to end rabies by 2030 COAS inspects ongoing projects in Army Super Camp, Ngamdu School resumption: Expert advocates provision of clean water to check spread of infections Armed Forces College holds memorial service for 1992 Ejigbo plane crash victims Increased tariff: Previous administration created problem in power sector Scores of terrorists killed in massive airstrikes on hideouts in Borno – DHQ Wike promises early completion of 258-bed mother, child hospital in Port Harcourt Yobe IPAC agrees with LG elections postponement Brazil court postpones league game after several COVID-19 positive tests Don charges media on changing maternal health narratives