AFRICA’s IMPREGNABLE DEBT POSITION


By
John Moono

Former Burkina Faso Leader Thomas Isidore Sankara once echoed this on Debt:
Under it’s current form, that is imperialism-controlled , debt is a cleverly managed reconquest of Africa, aiming at subjugating it’s growth and development through foreign rules. Thus each one of us becomes the financial slave which is to say a true slave.
Africa’s independence has over the years failed to produce the kind of development that the continent desires both financially and in terms of infrastructure.
Africa is in a hurry for infrastructure development which has led the continent into acquiring loans for that purpose. Africa’s rising debt is mainly held by the Chinese. Chinese loans to the continent exceeds $140 Billion. China’s total loans to Africa during the 2000 to 2018 have been to the tune of $148 Billion, mostly in large scale infrastructure projects.

Ad of 2021, the total external public debt in Africa reached $ 726.55 Billion. This compared to the previous year, the amount of foreign public debt increased from $696.69 Billion in 2020. The desire by the Elite of African Politics to continue borrowing will only lead the continent to position of being unable to service the debt. Failure to pay back the Debt will only lead to modern day Colonialism for the African continent. The reconquest of the continent is well and truly on based on the impregnable debt position of Africa.
With that said, China holds at least 21% of the African debt and payments to China accounts for nearly 30%as of 2021 debt service. Angola is the most indebted African country with an estimated debt of $ 25 Billion. Of the 21 % debt China holds for the African continent, Angola alone accounts for almost a third of the total Debt as per African Insider report.
The African impregnable debt position is not all groomy as the continent has been showing some positive strides in the recent times despite the negative consequences of the Covid-19 pandemic which forced little or limited economic activities in many countries thereby causing contraction of the economies.

The Washington Post reports that Africa’s total Gross Domestic Product stood at $ 2.6 Trillion and the Gross Domestic Product growth stood at 3.7% as of 2019. Furthermore, the current-dollar Gross Domestic Product increased by 7.8% at an annual rate or $432.5 Billion in the third quarter to a level of $23.17 Trillion. In the second quarter Gross Domestic Product increased at an annual rate of 13.4% or $702.8 Billion reported in October of 2021.

Africa needs to Sustainable the reasonable Economic Growth the Continent has posted in the previous two quarters of 2021. The growth shows steady progress and recovery from the economic shock brought by the Covid-19 pandemic.
The Debt position of the continent is likely to reach impregnable position should the continent fail to Sustainable Economic Growth.

Published by MyWritings

A Writer, A Diplomat in Waiting, Climate Change Advocate and a Football Administrator

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