Maait: We look forward to launching the Alliance of African Countries for Sustainable Debt in Cairo before next June

Dr. Mohamed Maait, Minister of Finance, was keen, on Tuesday, to hold a number of bilateral meetings, on the sidelines of his participation in the fifty-fifth annual meeting of African Ministers of Finance, Planning and Economic Development.

During which the importance of coordinating the African position was emphasized so that Africa speaks with one voice in international forums, and deepening continental integration efforts to enhance the capabilities of African economies in facing global crises.

Egyptian initiative

The minister stressed the importance of African and non-African support for the Egyptian initiative for a sustainable debt alliance, in a way that contributes to advancing green growth rates and accelerating the pace of economic recovery.

Economic commission

The minister called on the Economic Commission for Africa to continue supporting the Egyptian initiative for a sustainable debt alliance by inviting its members to join this alliance with the aim of unifying the African position on the debt crisis in global forums.

Challenges facing African

The minister reviewed the challenges facing African countries in providing their financing needs from international markets.

In light of the high inflation rates in developed countries, and the tendency of many central banks to raise interest rates, which resulted in the difficulty of African countries' access to international financial markets.

The Minister of Finance, said that African countries, which used to allocate only 5% of their revenues to repaying external debts, are now allocating 17% of their revenues to repaying external debts, and if internal debts are added, this percentage will reach 35%.

Biggest challenge facing African countries

Maait added that the biggest challenge facing African countries is not mobilizing domestic resources, but rather obtaining financing from abroad.

The discussion touched on the importance of finding an African mechanism for the settlement of payments, through which consideration could be given to giving an impetus to the mechanism proposed in this regard by the African Export-Import Bank Or expand and develop the scope of the Regional Payment and Settlement System “REPSS” of the Common Market for Eastern and Southern African Countries “COMESA Organization”