Trump turmoil hitting Africa’

CRITICALLY needed economic growth in Africa is being held back by high borrowing costs imposed by international lenders, with unpredictable US policy changes adding to the strain, said former finance minister Trevor Manuel, who is the head of the G20 panel on the continent.

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Manuel chairs the panel of experts working on proposals to address issues affecting Africa, including high debt, to be presented at a summit of the Group of 20 leading economies in November.

African nations were not necessarily more indebted than major economies but they faced higher debt servicing costs, Manuel said.

The “unbelievably expensive and prohibitive” cost of capital for African nations has hobbled their development, he said.

More than half of Africa’s 1.3 billion people live in countries with debt interest payments higher than social spending on health, education and infrastructure, according to the South African government.

South Africa is the only African nation in the G20 and has made debt sustainability for developing countries one of the priorities of its presidency of the group of 19 countries, the AU and the EU. African countries will pay close to $89 billion (R1.5 trillion) in external debt service alone this year, with 20 low-income countries at risk of debt distress, it says.