Lionel Zinsou on France24: How to finance recovery while avoiding the debt trap?
June 3, 2021
Lionel Zinsou, Managing Partner of Southbridge, participated in a debate entitled New Deal for Africa: how to finance recovery while avoiding debt trap.
During the debate, speakers acknowledged that rather than debt the focus should be put on financing to speed up socioeconomic recovery post-pandemic. Facing new challenges brought on by the impact of Covid-19, african economies remain underfinanced, with Lionel linking this phenomenon in parts to the overestimation of the risk of default by ratings agencies.
The challenge to lower risk premiums and to enable african countries to borrow at lower costs reside in removing the stigma associated with african countries’ risk when countries in similar economic standing are not judged as harshly.
Moderated by France 24’s Francois Picard, other participants in the debate included Ken OFFORI-ATTA, Ghanaian Finance Minister, Marin FERRY, Assistant Professor, Univ. Gustave Eiffel and Louis BEDOUCHA, Senior Advisor, PwC.
The debate is available here.
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