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G20 adopts proposals on debt sustainability

TAKING ACTION: Manuel hands over the Africa Expert Panel report on debt to Ramaphosa
TAKING ACTION: Manuel hands over the Africa Expert Panel report on debt to Ramaphosa

The Group of 20 (G20) has adopted resolutions on debt sustainability, endorsing an October declaration by finance ministers that acknowledged that low- and middle-income countries face disproportionately high costs when they seek external debt.

Debt sustainability is a particularly prickly issue for many countries in Africa, which have complained of unfair treatment by credit ratings agencies, which price their debt at rates far higher than the rest of the world. Many African states are battling with historically unsustainable levels of debt, limited access to concessional lending, and an ever-widening developmental gap with the rest of the world.

Known as the 'African premium', the disproportionately higher interest costs are estimated by the United Nations Trade and Development (UNCTAD) as reaching about $75 billion annually, an amount that robs citizens of other developmental needs, whilst putting countries at high risk in the event of any future economic shocks.

Editor's Comment
Our digital safety is in our hands

That sounds like good news. But the report also warns that this may simply be because our digital economy is still young, not because we are safe. As more people shop, bank and pay online, criminals will follow.We Batswana do not need a report to tell us that danger is real. Many of us have heard of or fallen victim to KYC scams. A caller impersonates your bank or mobile money provider. They say they need to “verify” your account. They ask...

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