UNECA’s Armah on how to finance Africa's post-COVID-19 development
The COVID-19 crisis has exacerbated the pressure on Africa’s development financing challenges by making public finances more strained, debt unsustainable, and foreign direct investment retracting. Bartholomew Armah, Director, Macroeconomics and Governance Division at UNECA joins CNBC Africa on what African governments should do to finance post Covid-19 development.
Fri, 10 Dec 2021 10:27:31 GMT
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AI Generated Summary
- The importance of mobilizing domestic resources and reducing borrowing costs
- The critical need to increase vaccination rates and support local vaccine manufacturing
- The necessity of balancing rising debt with mobilizing domestic revenues and addressing illicit financial flows
The COVID-19 crisis has brought to the forefront the challenges that Africa faces in financing its development, with public finances strained, debt levels rising, and foreign direct investment retracting. Bartholomew Armah, the Director of the Macroeconomics and Governance Division at UNECA, provides valuable insights on how African governments can navigate these challenges and finance post-COVID-19 development. Armah highlights the need for African countries to focus on mobilizing domestic resources, reducing the cost of borrowing, and ensuring value for money in development projects. He emphasizes the importance of increasing vaccinations on the continent and leveraging mechanisms like the African Vaccination Acquisition Task Team to access vaccines. Additionally, he advocates for local manufacturing of vaccines to create jobs and enhance research capabilities. Armah also addresses the issue of rising debt and the need to balance it with mobilizing domestic revenues and tackling illicit financial flows. He stresses the importance of transparency in giving incentives to investors and the need for economic diversification and value addition to support local industries.
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