The debts of many African countries are growing rapidly due to the increase in interest rates and the exchange of currencies in the world, causing a decrease in the value of local currencies.
This has been stated in Victoria Falls, Zimbabwe, by the Deputy Secretary General of the Ministry of Finance, Mr. Elijah Mwandumbya, on behalf of the Minister of Finance, Hon. Dr. mwigulu Lameck Nchemba, during the 56th Meeting of Ministers of Finance, Planning and Economic Development from African Union countries coordinated by the Economic Commission under the United Nations (UNECA)
Mr. Mwandumbya said that previously the growth of debt was in line with borrowing, but now it has been found that there are other reasons that stimulate the increase in debt, including major changes in exchange rates and interest rates, thus making African countries look for an alternative wayto solve that challenge.He said that in servicing the debt "dept service" that has increased, there has been a big challenge because many countries still do not have the ability to collect enough income to cover various services.
"We in Tanzania are grateful that through Moody's and Fitch International Institutes that are involved in the evaluation of the country to know its ability to lend in the international financial markets, they have confirmed that our country is at a good level to be able to continue to be loanedamong a few countries", said Mwandumbya.Mr. Mwandumbya has thanked the President of the United Republic of Tanzania, Hon. Dr. Samia Suluhu Hassan, by directing well to the issue and eventually the country will be able to have debt levels that are sustainable and internationally accepted.
In addition Mr. Mwandumbya said that in response to the challenges of debt growth, especially in this period of major climate change, African countries must have a strategy to ensure that they get financial resources so that the plans being implemented can meet the expectations of the people.
"The biggest challenge that we see here for our African countries is the need to continue to collect enough income to assure ourselves that we can find the resources to be able to service the debt but we can also pay salaries and also serve various budgetary expenses", added Mr. the wandererhe said in the meeting the big agenda discussed is to try to find a solution of how countries will improve the levels of revenue collection to go from levels below 11 and 12 percent of the Domestic Income Growth (GDP) to levels that are acceptable from 16 percent.
for his part, the Secretary General of the Office of the President, Planning and Investment, Dr.tausi Kida, said that the purpose of the 56th meeting is to exchange ideas and especially on the slogan that says Financing the Transition to Inclusive Green Economies in Africa that gives inspiration and reflects on ways that can be used to finance the Economy and make investments that you are consideringclimate change."We run the economy through taxes, so we are figuring out how we will be able to improve tax administration issues in African countries to increase the scope of taxes but also to ensure that the taxes collected go to the intended goals, explained Dr. Kinda.
Dr. kida, he said that at the meeting they were able to see many new emerging ways to help the economy, especially cheap loans in the green economy that can significantly help finance development plans and projects.
The 56th meeting coordinated by UNECA is a forum that has been established by the United Nations to help African countries hold various discussions and researches in order to produce and create innovations that will grow the economy, thus creating an opportunity to discuss and ensure that the advice given is compatible withreal environment.
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