[ad_1]
There are many positives for poorer African nations if your article “G20 approaches IMF relief funds agreement” (Report, Nov. 19) is correct. All the sub-Saharan nations in which I operate have been materially affected by the pandemic and, equally important, by the squeeze on international investment and commercial activities that normally contribute to our economic and social development.
The IMF cash injections will strengthen their balance sheets and debt cancellation from the G20 and the Paris Club will help, but facilitating adequate investment that caters to long-term development is infinitely more valuable.
Highly indebted countries struggling to attract investment need international institutions to be more creative when they meet their investment goals.
Africa requires a tailored approach that recognizes its challenges. China is wise in this. It is evident everywhere in Africa that the Chinese are able to free up funding, deploy capital and mobilize much faster than their Western counterparts and they do so in a way that meets the specific needs of the countries themselves.
The assumption is that the Chinese are doing something extraordinary, in reality they are simply listening to the needs of the various countries they are trying to collaborate with.
Where capital is reserved for Africa, it is too often not used because the criteria are not met. As a result, both African consumers and Western investors are losing out.
While there will be no progress on Special Drawing Rights (SDRs) at this G20 meeting, I hope the IMF and the World Bank will work to adapt their investment criteria to allow private sector investors like myself to better contribute to the long-term sustainable development Africa.
Kwaku Boakye-Adjei
Colmar Berg, Luxembourg
Source link
