Coronavirus: Emmanuel Macron in turn calls to “cancel” the debts of African countries

The French President during his annual speech to the French ambassadors (photo of illustration). REUTERS / Philippe Wojazer / Pool

Text by: Olivier Rogez Follow

France and Europe will have to help Africa to fight against the coronavirus by "massively canceling its debt," said French President Emmanuel Macron on Monday. He is not the only one to plead in this direction. Explanations.

Publicity

Read more

Monday evening, Emmanuel Macron echoed the requests made recently by several African leaders, such as the Senegalese Macky Sall. It also supports several international financial institutions such as the IMF and the World Bank, which have been demanding since mid-March debt cancellations or rescheduling for African countries when the coronavirus pandemic threatens. The issue will be debated this week by the G20 countries on the sidelines of the spring meeting of the International Monetary Fund.

Moratorium, rescheduling, alleviation or cancellation: for three weeks the leaders of large countries and international financial institutions have offered solutions to ease the burden of Africa. Because the economic shock created by the pandemic requires, to be overcome, budgetary capacities. The weight of African debt prevents countries from freeing up these resources. In ten years, the African public debt has doubled to reach today 365 billion dollars of which 145 are owed to China.

Emmanuel Macron wants France and Europe to cancel the debts they have on Africa. But this only affects a small part of the burden. Because now, private debt represents a significant part of the total. African countries that have raised funds in the form of Eurobonds in recent years, for example. This private debt, often fragmented, is more difficult to cancel.

In a tribune signed in particular by three of the four envoys appointed by the African Union to coordinate international aid, African officials are calling for a two-year freeze on the payment of debts, principal and interest. Time to find the right mechanisms for a long-term solution.

Newsletter With the Daily Newsletter, find the headlines directly in your mailbox

Subscribe

Follow all international news by downloading the RFI application

google-play-badge_FR

  • France
  • Africa
  • Coronavirus
  • European Union

On the same subject

Coronavirus: “the strictest” confinement extended until May 11 in France

Coronavirus: in Africa, the needs are immense according to Jean-Yves Le Drian

G20: IMF and World Bank call for debt freeze for poor countries