Dr Alic laments World Bank, IMF high-borrowing interest rate
Author: Lasuba Memo | Published: October 28, 2024
Bank of South Sudan Governor has lamented the high-interest loans for African countries by the International Monetary Fund (IMF) and World Bank (WB) saying these restrict funding for critical sectors like education and healthcare.
Dr James Garang who doubles as Chairman of the East African Community Monetary Affairs Committee
reportedly pointed out Africa is experiencing a staggering 132 per cent rise.
“UNCTAD (United Nations Conference on Trade and Development) data shows that developing countries face a 64 per cent increase in interest payments over the past decade, with Africa experiencing a staggering 132 per cent rise,” he said.
Dr Garang also criticized the inadequate representation of Africa at the ongoing annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington DC.
” Africa, despite being nearly 20 per cent of the global population, has historically lacked adequate voting power in institutions like the International Monetary Fund and World Bank.”
He said IMF and World Bank need what he described as comprehensive overhaul, citing Africa’s under representation and burden some debt.
“The current system, with its skewed representation and burden some debt, poses a significant threat to Africa’s development aspirations. Urgent reforms are necessary to create a more equitable and sustainable financial architecture.”
He added that the representation translates into limited access to resources and higher borrowing costs for African countries.
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