United Nations is predicting that Ghana together with some other African countries may not be able to pay up their public debts unless some drastic measures are taken to reform the global financial system.
According to a recent report released by the UNDP, Africa is facing a double crisis with the combined effects of the war in Ukraine and of the COVID-19 pandemic.
The document further stated that the continent may be caught up in the cycle of dependency unless some remedial measures are taken.
Speaking on Foreign Affairs on the JoyNews Channel, Charles Abani – UN Resident Coordinator in Ghana said the country must find ways of becoming more resilient.
His comments come in the wake of predictions by global rating agency, Fitch, which says it sees more than 50% chance of Ghana defaulting on its debt repayment.
According to the rating agency, the country’s sovereign credit rating may face another downgrade closer to default, if talks with the International Monetary Fund for a $3 billion package lead to debt restructuring.
Mr. Abani warned that Ghana and other African nations will face a debt crisis next year owing to default in payments.
“Africans need to learn how to become more resilient in the face of these challenges. I think Ghana’s own ambition for self-reliance is a module that we all need to look at and in the aftermath of the pandemic, and again let us quote the President (Nana Akufo-Addo) we must not be caught with our pants down,” he told host Blessed Sogah.
He added that. “the Secretary-General and the UN has called for a number of systemic level responses. One is the need to reform the global financial Architecture that we work within. As we speak, we are already predicting that next year will bring a debt crisis, a debt crisis that has arisen from some of the impacts of COVID-19 and certainly the kind of growth we expected on the continent has not happened.
“Sluggish recovery from the COVID-19, Impacts of the Russia-Ukraine war means that many countries are going to face debt defaults unless we review and come up with different ways on how to finance the globe more fairly,” Mr. Abani said.
