Washington DC, 3rd September, 2023 (WAM) — New analysis from The ONE Campaign shows that the combination of rising interest rates and lack of sufficient affordable capital from the World Bank is increasing economic pressures on vulnerable countries already at high risk of debt distress, African Media Agency reported. ONE’s research shows that borrowing from capital markets is costing African countries 500% what they would pay if sufficient capital was available from the World Bank. This could result in African countries paying an additional $56 billion in repayment costs on new debt raised between 2017 and 2021. With 36 low-income countries already at high risk of debt distress, this affordable capital crisis means that a growing number of low- and low-middle income countries will be unable to turn crisis hit economies around, invest in vital services such as health and education, or respond to the climate crisis. ONE’s analysis also shows that lack of affordable capital will impact the whole world. Africa alone possesses vast renewable energy resources and carbon capture potential that could fuel its economic growth and transform global efforts to tackle climate change, but this potential cannot be realised without access to affordable capital. Hatem Mohamed
Source: Emirates News Agency (WAM)