African gov’ts incurring loans with interests of the citizenry

The African Forum and Network on Debt and Development encourages governments to desist from negotiating for loans on bi lateral level saying that this has proved to be dangerous.

They argue that this comes with influence in an exploitative way from the developed countries before the agreement is signed depending on their interests in a particular country.

The Programs Director Uganda Debt Network Kapwepwe Julius explains that with coordination of governments for big loans it will help to improve on the bargaining power especially when it comes to the big projects like the standard gauge railway.

He adds that with the increasing borrowing from African countries and the un betted corruption it will still be difficult to deal with the debt that has accumulated to a tune of 30 trillion.

At Imperial Golf View hotel in Entebbe Kapwepwe notes that traditional sources of credit are shrinking and new options with harder terms are emerging as a number of African countries are also increasingly borrowing.

Story by

Eva Namugabi

September 28 2017