Adesina says Africa needs to manage budgets carefully

Adesina says Africa needs to manage budgets carefully

African countries will have to manage their finances carefully to repay dollar debt raised in recent years as weak currencies push up servicing costs and oil and commodity revenues tumble, the new head of the African Development Bank said.

From oil-rich Nigeria and copper producing Zambia to fast-growing Rwanda and Ghana, African nations have taken advantage of historically low yields and strong investor appetite to issue Eurobonds or raise other funds on international markets.

Africa’s foreign currency bond issues between 2000 to 2014 totalled $20.5 billion, with $7.4 billion of that raised in 2014 alone, Akinwumi Adesina, who took over as president of the 50-year-old AfDB in September, told Reuters in an interview. “You are going to be financing high-cost debt using a devalued currency — it just means it is more difficult for you to finance your debt,” he said in Addis Ababa late on Tuesday. Read more

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