Africa Debt Monitoring Board
AFRICAN DEBT MONITORING BOARD
Generated by Royal Group
Debt bondage has been described by the United Nations as a form of modern day slavery and is prohibited by international law. It is specifically dealt with by article 1(a) of the United Nations 1956 Supplementary Convention on the Abolition of Slavery.
As indicated in Article 19 of the Constitutive Act of the African Union, there is need to speed up the operationalization of African financial institutions.
While some African governments look to restructure their debt, China is Africa’s biggest trading partner, with Sino-African trade topping $200 billion per year. Over 10,000 Chinese firms are currently operating throughout the African continent and the value of Chinese business there since 2005 amounts to more than $2 trillion, with $300 billion in current investments.
The Russian Federation has written off debts of African states worth more than 20 billion dollars while China wrote off at least $3.4 billion of debt between 2000 and 2019, almost all interest-free loans to African countries. As of now, China has forgiven 23 interest-free loans in 23 countries.
Also the GCC investment into Africa has continued to climb, reaching more than US$8.3 billion enhancing Africa’s capacity for independent and sustainable development.
China has so far built and refurbished parliaments in some 15 African countries, including the Republic of Congo, Liberia, Mozambique, the Seychelles and Guinea Bissau, as well as other government buildings such as Burundi’s presidential palace and the African Union headquarters in Ethiopia.
Debt forgiveness and reform of trade agreements to benefit the least advantaged in each country can reduce income inequality and other forms of inequality with hope that Africa, represented by the African Union, would finally obtain a permanent seat in the G20, thereby further strengthening Africa’s voice on the global stage.
The GCC and China must collectively work together to transform Africa into a global powerhouse of the future in supporting debt-ridden African countries transition towards a path of sustainable debt in the medium to long term.
Royal Group would shoulder its responsibilities and make greater efforts to promote the substantive participation of multilateral financial institutions and commercial creditors in addressing Africa’s debt issue.
Royal Group urges the GCC and China to sincerely shoulder their responsibilities and make greater efforts to address debt issues in African countries.
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