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Debts of Low-Income Countries Hit $744bn in 2019

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Debts

By Adedapo Adesanya

The World Bank has disclosed that the total external debts of Debt Service Suspension Initiative (DSSI)-eligible countries increased within 12 months by 9.5 per cent to $744 billion in 2019.

This was disclosed in the latest International Debt Statistics 2021 released by the Bretton Wood Institution, noting that the figure was equivalent to one-third of the countries’ combined gross national income.

The DSSI was intended to help developing countries with the overwhelming debt they owed to bilateral lenders.

“Lending from private creditors was the fastest-growing component of the external debt of DSSI-eligible borrowers, up five-fold since 2010.

“Obligations to private creditors totalled $102 billion at the end of 2019.

“The debt stock of DSSI-eligible countries to official bilateral creditors composed mostly of Group of 20 (G-20) countries, reached $178 billion in 2019 and accounted for 27 per cent of the long-term debt stock of low-income countries,” the report said.

According to the report, this highlights an urgent need for creditors and borrowers alike to collaborate to stave off the growing risk of sovereign-debt crises triggered by the COVID-19 pandemic.

It said that the pace of debt accumulation for these countries was near twice the rate of other low- and middle-income countries in 2019.

The report said that in response to an urgent need for greater debt transparency, this edition provided more detailed and disaggregated data on external debt than ever before in its nearly 70-year history.

It noted that details include breakdowns of what each borrowing country owes to official and private creditors in each creditor country and the expected month-by-month debt-service payments owed to them through 2021.

The World Bank said that before the onset of the COVID-19 pandemic, rising public debt levels were already a cause for concern, particularly in many of the world’s poorest countries as discussed in its Four Waves of Debt report published in December 2019.

“Responding to a call from the World Bank and the International Monetary Fund, the G20 endorsed the DSSI in April 2020 to help up to 73 of the poorest countries manage the impact of the COVID-19 pandemic.

“The debt stock of DSSI-eligible countries to official bilateral creditors, composed by mostly G-20 countries, reached $178 billion in 2019 and accounted for 17 per cent of long-term net debt flows to low and middle-income countries.

“Within the G-20 creditor group, there have been some important shifts characterised by a marked increase in lending by G-20 member countries that are themselves middle-income countries,” it stated.

Citing China as an example, it said that though it was by far the largest creditor, it had seen its share of the combined debt owed to G-20 countries rise from 45 per cent in 2013 to 63 per cent at end-2019.

It said that over the same period, the share for Japan, the second-largest G-20 creditor, had remained broadly the same at 15 per cent.

The bank said that the 2021 IDS data released also reflects the progress made to increase coverage of complex debt instruments, given their rising prominence in the debt profiles of developing countries.

“The central bank and currency swap arrangements that represent loans from other central banks also occur in low and middle-income countries.

“The World Bank is working to ensure that these debt instruments are captured in the IDS dataset.”

The report, however, said that increased debt transparency would help many low and middle-income countries assess and manage their external debt through the current crisis and work with policymakers toward sustainable debt levels and terms.

Speaking on this, Mr David Malpass, the World Bank Group President said that achieving long-term debt sustainability would depend on a large-scale shift in the world’s approach to debt and investment transparency.

“The time has come for a much more comprehensive approach to tackling the debt crisis facing the people in the poorest countries – one that involves debt-service suspension as well as broader efforts such as debt-stock reduction and swifter debt-restructuring, grounded in greater debt transparency.”

Mrs Carmen Reinhart, World Bank Chief Economist said debt enables governments to have extra resources they needed to invest in health systems, education, or infrastructure.

“If you have a debt problem, all those ambitions suffer. That is why it is important to get the debt unto sustainable ground as quickly as possible. We cannot afford another lost decade.”

The report, however, said that greater debt transparency was critical to productive investment and debt sustainability.

It, therefore, called for full transparency of the terms of the existing and new debt and debt-like commitments of the governments of the poorest countries.

The bank also urged creditors and debtors alike to embrace this transparency to facilitate analysis that would enable countries to identify sovereign-debt levels consistent with growth and poverty reduction.

The bank said that as one of the largest sources of funding and knowledge for developing countries, it was taking broad and fast action to help developing countries strengthen their pandemic response.

“It is supporting public health interventions, working to ensure the flow of critical supplies and equipment and helping the private sector continue to operate and sustain jobs.

“It expects to deploy up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses and bolster economic recovery,” the World Bank noted.

The organisation said this includes $50 billion of new International Development Association (IDA) resources through grants and highly concessional loans.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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John Mahama Wins Presidential Poll to Return as Ghana’s President

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John Mahama

By Adedapo Adesanya

Former President of Ghana, Mr John Dramani Mahama of the National Democratic Congress (NDC), has won a historic comeback election victory on Sunday as voters pushed out the ruling New Patriotic Party (NPP) over its management of economic crisis in the West African country.

NPP candidate and current Vice President Mahamudu Bawumia to incumbent President Nana Akufo-Addo today conceded defeat in the weekend presidential election after failing to shake off widespread frustration over high costs of living.

Results showed that Mr Mahama won 56.3 per cent of the vote against 41.3 per cent for Bawumia.

Mr Mahama, who ruled as president from 2012-2017, will return to lead the country on his third attempt to reclaim the nation’s top post after falling short in 2016 and 2020 elections.

Ghana’s two main parties, the NPP and NDC, have alternated in power equally since the return to multi-party politics in 1992.

The country’s economic woes dominated the election after the continent’s top gold producer and the world’s second-largest cocoa exporter went through a crisis of default and currency devaluation, ending with a $3 billion bailout from the International Monetary Fund (IMF).

Meanwhile, President Bola Tinubu has congratulated Mr Mahama on his victory in the December 7 general election.

In a telephone call to Mr Mahama, President Tinubu hoped that Mahama’s ascension to power for the second time would further bring stability to the Economic Community of West African States (ECOWAS).

According to a statement by presidential spokesman, Mr Bayo Onanuga, the Nigerian President commended the people of Ghana for their commitment to democracy, which was demonstrated through the peaceful and successful conduct of both the presidential and parliamentary elections.

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Honest View Award: Moscow Rewards Best Foreign Journalists, Bloggers

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Honest View Journalism Award

By Kestér Kenn Klomegâh

On December 3, Moscow prepares to hold its ground-breaking International Honest View Award for foreign journalists and bloggers in a planned ceremony.

The 2024 award has collected a record number of applications for all three years of its existence – 488 competition materials from 59 countries, including Argentina, Germany, Israel, India, Iran, Canada, China, Norway, Romania, Serbia, Slovakia, Turkey, 19 African countries and all CIS countries.

The goal of the Honest View Award is to identify the best materials from foreign media and authors who cover humanitarian, cultural and economic initiatives of the Russian Federation abroad, as well as joint global, interregional and inter-country projects with Russia. According to the organizers, the world is in demand for objective information about Russia, its international activities and projects abroad.

The competition for foreign media is annually held in order to identify, popularize and promote the best journalistic experience in covering the humanitarian activities of the Russian Federation abroad. The surge in the applications, as compared to the previous years, demonstrated a growing interest in reporting on Russia, especially in the context of the changing geopolitical situation.

This is not the limit: based on the dynamics of growing interest in the contest in the previous two years, the Organizing Committee has expanded the geography to all the continents – especially since the contest was receiving attention from international associations that unite journalists from different regions and strive to maintain high standards of the profession.

It is also aimed at inspiring and motivating foreign journalists to join the movement for multipolar change and make a departure away from criticisms to promote Russia’s image abroad. The works of foreign journalists and bloggers were evaluated by the members of an Expert Council and the Media Award Jury.

The most popular nomination was “Best Material on International Cultural Partnership with Russia” – 159 applications were received. 132 authors are competing for the victory in the nomination “Best Material on Social and Humanitarian Topics” and 103 materials have been submitted in the nomination for “Best Material in the Genre of Journalism and Documentary” after the deadline on 25th September 2024, according to reports.

One of the innovations of the award in 2024 is the nomination for young journalists aged 18-25, and it has found its audience: more than 15% of the applications received for the competition were submitted by applicants under 25. This year’s innovation – the nomination “Best Material by Young Journalists about the Russian Federation” – attracted 54 young and aspiring journalists aged 18-25 to the competition. The most talented and active participants will be invited to Moscow in early December to attend the Media School, which includes lectures, master classes and trainings by Russian and foreign experts on international issues, global challenges, mastering modern journalism formats and mass communication technologies in the context of covering international humanitarian projects.

Another innovation of this year included the special nomination for the author of the material covering cooperation within EAEU, BRICS and other international projects and initiatives. The winner in this category was selected by the Competition Jury together with one of the Award’s partners. The final results of the award will be announced at the award ceremony for the winners and laureates on 3rd December 2024 in Moscow.

Reference: The Honest View Media Award is being held for the third year and has already become a platform for uniting journalists and bloggers from all over the world. In 2022, 118 journalists from 28 countries participated in the award. Participants from Uzbekistan, Montenegro, Tajikistan, Belarus, and Iran were the winners of the competition. In 2023, the geography of the award expanded, and the number of participants doubled: 250 works from 51 countries were received.

In 2024, journalists and bloggers from 59 countries submitted applications for the competition, including Abkhazia, Azerbaijan, Argentina, Armenia, Bangladesh, Belarus, Benin, Burkina Faso, Gabon, Ghana, Guinea, Germany, Greece, Egypt, Zambia, Zimbabwe, Israel, India, Iran, Kazakhstan, Cameroon, Canada, Kyrgyzstan, China, Congo, Costa Rica, Kyrgyzstan, Latvia, Lebanon, Malaysia, Mali, Morocco, Moldova, Mongolia, Norway, Paraguay, Peru, Romania, Senegal, Serbia, Syria, Slovakia, Tajikistan, Thailand, Togo, Tunisia, Turkmenistan, Turkey, Uganda, Uzbekistan, Finland, CAR, Chad, Montenegro, Ecuador, Ethiopia, South Africa, South Ossetia.

The organizer of the award and media school is the Federal Agency for the Commonwealth of Independent States, Compatriots Living Abroad, and International Humanitarian Cooperation (Rossotrudnichestvo). The operator of the competition and media school is the AGT Communications Agency, one of the leaders in the communications industry of Russia and the CIS countries.

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Abidjan-Lagos Corridor Highway Under Construction

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Abidjan-Lagos Corridor Highway

By Kestér Kenn Klomegâh

Never underestimate the power of the Economic Community of West Africa States (ECOWAS), also known as CEDEAO in French and Portuguese, created on 28th May 1975 as a regional political and economic union bringing together fifteen (15) countries of West Africa. Per the date of its establishment, this so-called regional bloc marks its 50th year in 2025, a significant historical celebration.

Considered one of the pillar regional blocs of the continent-wide African Economic Community (AEC), ECOWAS generally has its primary common goal of working consistently towards achieving, what is first referred to, as “collective self-sufficiency” for its member states by creating a single large trade bloc by building a full economic and trading union. Additionally, ECOWAS aims to raise the living standards of an estimated population of over 425 million people and to promote economic development based on the principles of interdependence, solidarity, and cooperation.

Until writing this article, ECOWAS has frequently been discussing and reviewing the Abidjan-Lagos Corridor Highway Development Project, one single regional infrastructure project these several years. It has shown its total commitment to looking for funding while billions have been siphoned by leaders into foreign banks. African leaders are quick negotiating and paying for foreign military weapons but are grossly unsuccessful in soliciting similar assistance from these external partners to invest in infrastructure development such as the Abidjan-Lagos Corridor Highway Development Project.

West African Highway Launched in 2017

The construction of this proposed grandiose West African highway has its chequered history. The proposed project was successfully launched in 2017, and since then it has had a series of high-powered meetings and conferences, technical studies have been conducted, and the construction to its feasibility and practical operationalization. The Abidjan-Lagos highway, the six-lane dual carriage highway, is estimated at $15.1 billion.

On resource mobilization, it was explicitly noted that ECOWAS had adopted a new regulatory framework on the Public Private Partnership (PPP) – an incentive for the entry of the private sector in large investments like the nature of this project. The African Development Bank (AfDB) on behalf of the development partners offered its assurance for unwavering commitment to the realization of the highway.

Akinwunmi Adesina, President of the African Development Bank (AfDB) has several times highlighted the importance of the Abidjan-Lagos highway as an infrastructure project in West Africa that would ease the free movement of people, goods and services, generate social and economic activities, and ultimately promote cross-border trade within the region, its economic viability and enormous potentials especially now that African Union looks to implement the African Continental Free Trade Area (AfCFTA). Noticeably, Africa has long been considered a frontier for manufacturing, technology, for food production. Africa is getting ready for business, it is busily building the world’s largest single market of 1.4 billion people.

Special Meetings and Technical Consultations

Several meetings upon meetings and meetings have been held since the project was proposed in 2017. Since 2017, paid meetings have been held, and experts have been paid. The latest of such a paid meeting was held on November 10-11, 2024. This roundtable was initiated following the instructions given to the ECOWAS Commission. Late September 2024, such a roundtable meeting was held in Abidjan, the capital city of Côte d’Ivoire, under the auspices of the Commission of the Economic Community of West African States (ECOWAS), the African Development Bank (AfDB) and the ECOWAS Bank for Investment and Development (EBID).

The highway corridor is calculated to be approximately 1,080 km long. It will connect some of the largest and most economically dynamic cities Abidjan, Accra, Cotonou, Lomé and Lagos while covering a large proportion of West Africa’s population. It will also link very vibrant seaports in West Africa. In addition, it will serve all the landlocked ECOWAS member-states, for example, Burkina Faso, Mali and Niger in the region. Nearly 40 million people are estimated to be living along the Abidjan-Lagos corridor while 47 million people travel along the axis every year. These are expected to be direct beneficiaries of the development of the project touted to be a real backbone of trade in the region.

According to official documents, this highway project falls in line with the key objectives of the ECOWAS Vision 2050, including (i) facilitating the movement of people and goods, and (ii) accelerating trade and transport, regional and international, improving road infrastructure. It is eventually expected that the transport corridor will be transformed into a development corridor to stimulate investment, sustainable development and poverty reduction within the entire region.

West African Highway and AfCFTA

The focal point of controversy and debate, these several years, are centred on the mechanism of financing, and the state-of-the-art management of this new mega-highway – from planning through practical construction to its final commissioning, ready for cutting-edge usage by the transport industry. The idea of prioritizing highway innovation, signalling a bold leap in West Africa’s transportation infrastructure, is its recognizable potential transformative impact. Simply intended to improve and facilitate the movement of services, goods and people across the region. The Abidjan-Lagos Highway highlights its potential to enhance regional connectivity and drive economic growth, especially with the establishment of the African Continental Free Trade (AfCFTA), the ambitious flagship of the African Union (AU).

According to ECOWAS’ latest document issued after their two-day special meeting held on November 11 in Abidjan, Côte d’Ivoire, “experts have lauded findings of the study which has among others, unveiled a potential $6.8 billion investment prepared and ready to be implemented to unlock economic growth and enhance the viability of the proposed highway.” The overall objective is to identify and unlock the inherent and latent economic potential (short, medium and long-term) and commercial viability of economic and industrial value chain projects. These economic projects, once implemented, will also generate trade volumes and traffic to augment the viability of the highway.

The final draft reports were issued after groups revisited (that was not the first time) several tolled bridges and roads in Abidjan for knowledge and experience sharing strategy envisaged for the Abidjan-Lagos Highway. At the end of the exercise, the study report (re)validated commitment to unlock the inherent and latent economic potential of the highway construction and estimated $6.8 billion in potential investment in the region.

Final Construction Still Out of Sight

For the past few years, significant attention has been drawn by the widely publicized announcement of securing enough funds from African banks and external sources for the construction of this regional highway which could become a cornerstone, and the public narrative of achievement by ECOWAS, which marks its 50th year in 2025. However, transport industry analysts, researchers and experts have already cast serious doubts and skyline scepticism if ECOWAS could live up to this onerous task. Grandiose ceremony-infested ECOWAS future task of achieving its primary target of constructing a ‘speed-highway’ remains an eternal dream. Noticeably, ECOWAS has little to celebrate, except its existence by name, (the golden jubilee) at its 50th year in May 2025. At least, Africans will rather jubilate over the authenticity of reforming and transforming the Economic Community of West African States (ECOWAS).

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