Post-coronavirus: Akufo-Addo proposes solutions to address Africa’s challenges

• President Akufo-Addo has called for debt cancellation for African countries amidst the COVID-19 pandemic

• He further urged for a restructuring of the global financial architecture to respond to the economic shocks

• Akufo-Addo also called on the IMF to lend Africa some 25-30% of the new US$650 billion SDRs

President Akufo Addo has proposed a number of solutions to address Africa’s challenges in the midst of the COVID-19 pandemic.

According to him, there is a need for a restructuring of the global financial architecture to respond to the shocks brought on by the pandemic which will in turn provide access and equity to long-term finance for Africa’s transformation.

Speaking at the 2021 Summit on Financing African Economies in Paris-France on Tuesday, May 18, 2021, President Akufo-Addo also added his voice to calls for the cancellation of debts owed by African countries.

“This should include the establishment of an African Stability Mechanism, akin to the European Stability Mechanism. The African Stability Mechanism will be a permanent firewall for Africa to safeguard and provide instant emergency access to financial assistance for countries in financial difficulty,” the president said.

The president further urged the International Monetary Fund to lend Africa some 25-30 percent of the new US$650 billion Special Drawing Rights (SDRs) in order to support low and middle income countries in Africa.

“I urge the IMF to on-lend twenty-five to thirty percent of the new six hundred and fifty billion dollars (US$650 billion) SDRs, to support low and vulnerable middle-income countries before the 2021 annual meetings, increase IDA funding to strengthen the balance sheet of the World Bank, replenish the African Development Bank, and Afreximbank to support investment in green investments, facilitate trade, and support the private sector to create jobs and build back better,” he proposed.

Akufo-Addo also stressed for immediate attention given towards liquidity and potential insolvency issues confronting the continent and its financial institutions.