The Economic Association of Zambia has observed that Africa’s economies risks collapsing if the African Union does not collectively agree and declare that it will not pay interest on debt for the duration of the Corona virus pandemic.
Association President Lubinda Habaazoka says with shrinking economic activities in the wake of the corona virus , African countries are increasingly finding it difficult to collect revenue.
Dr Haabazoka has predicted that the first country likely to experience an economic meltdown is possibly South Africa as it has already grounded it airline and many employees have been sent home.
He says with commodity prices falling below what was projected for the decade, Africa should collectively engage multilateral institutions to see the way forward.
Dr Habaazoka said the IMF which was created to create a stable international monetary system must come out and play its role.
“The African Economy will collapse if the African Union does not meet and collectively declare that they won’t pay interest on debt for the duration of the Corona crisis,” Dr Habaazoka said.
”With shrinking economic activities, countries are increasingly finding it difficult to collect revenue and the first country to fall will be probably SA with a huge airline that has many employees who currently can’t generate revenue because the airline is grounded. With commodity prices falling below what was forecasted for the decade, Africa should collectively engage multilateral institutions to see the way forward.“
He added, “Africa unlike OECD countries doesn’t have reserve currencies and consequently is unable to print money for bailouts without causing inflation.”
“The IMF was created in 1944 at Bretton Woods to create a stable international monetary system and as such the time has come for them to play their role for the world.”