Posted inInternational News
African Development Bank Calls for an End to Resource-backed Loans in Africa
The head of the African Development Bank (AfDB), Akinwumi Adesina, advocates for discontinuing loans secured by Africa's oil or critical minerals. Adesina highlights challenges such as the difficulty in pricing underground assets and the potential for exploitation in loan negotiations. These loans often lead to financial crises and hinder sustainable debt management in African countries. Major stakeholders include China and Western commodity traders, with initiatives like the Alliance for Green Infrastructure in Africa aiming to reduce reliance on problematic financing.