Africa-Press – Tanzania. PRESIDENT Samia Suluhu Hassan on Tuesday addressed the 41st Ordinary Summit of SADC Heads of State and Government, calling for debt relief to help developing nations overcome the effects of Covid-19 pandemic.
The Tanzanian President underlined the need for regional leaders to speak with one voice in asking for debt relief or extension of repayment time for African countries.
The move, she argued, would help the countries recover from the shocks of the global pandemic, in particular to effectively re-build their devastated economies.
Her call stems from the fact that the Covid-19 pandemic has wreaked havoc on the global economy, but the poorer countries have been hardest hit by the virus and face a debt crisis.
The pandemic has regrettably caused sharp declines in commodity prices, trade, and tourism, causing government revenues to dry up remarkably, especially among low and middle-income countries.
As such debt service suspension has been earmarked as a powerful, fast-acting measure that can bring real benefits to people in poor countries, particularly countries that don’t have the financial resources to respond to the coronavirus crisis. We therefore strongly support President Samia’s call for debt relief for low-income countries.
It is important no one is left behind in the recovery process. To achieve that, global financial institutions, private lenders and other development partners should allow the world’s poorest countries to suspend repayment of loans.
This will critically safeguard the lives and livelihoods of millions of people. Debt relief would enable African governments to focus on protecting vulnerable populations and bolstering social safety nets as well as support their private sectors, especially small and medium-size enterprises.
