World Bank’s Kwakwa speaks on the impact of Africa’s debt restructuring delays

The International Monetary Fund has been advocating for a swift resolution in debt restructuring talks for countries like Zambia and Ghana. At last week's Spring Meetings in Washington, the World Bank similarly urged bilateral creditors to finalize debt treatments under the G20's Common Framework. To gain more insights into the ongoing efforts in Eastern and Southern Africa, CNBC Africa's Godfrey Mutizwa engaged in a discussion with Victoria Kwakwa, the Vice President for Eastern and Southern Africa at the World Bank. Kwakwa shed light on the progress made in debt restructuring efforts, the challenges faced by countries in the region, and the initiatives being undertaken to address these issues. One of the key points highlighted by Kwakwa was the incremental advancements in debt restructuring initiatives. She mentioned that while progress is being made in countries like Zambia and Malawi, the pace is not as swift as desired. Kwakwa also touched upon the importance of the multilateral approach in debt resolution frameworks, emphasizing the need for refining existing platforms like the Common Framework to enhance efficiency. Moreover, Kwakwa addressed the broader economic challenges facing African countries, such as inflation, macro instability, and the impact of external factors like the Ukraine war and monetary policy shifts in advanced economies. She underscored the detrimental effects of these challenges on economic growth and emphasized the disproportionate impact on the most vulnerable populations. In response to these challenges, the World Bank is actively engaged in supporting social protection programs in the region to enhance resilience and alleviate the adverse consequences on livelihoods. While efforts are underway to address the pressing issues, Kwakwa acknowledged that more work needs to be done to accelerate the pace of debt restructuring and strengthen economic resilience in the region. The World Bank remains committed to working closely with governments and stakeholders to navigate through these challenges and foster sustainable development in Africa.