● Ghana, Ethiopia, Rwanda among world Bank’s 34 African HIPC countries
● HIPC countries are heavily indebted poor countries in the world.
● world Bank has classified 33 countries in Africa as HIPC nations.
The last time Ghana was a heavily indebted nation was in the 2000s, during President Kufuor’s administration
The heavily indebted poor countries’ was an initiative introduced by the International Monetary Fund, IMF and World Bank to ensure that no poor country in the world will ever be faced with debt burden it cannot manage.
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African countries under this category are Tanzania, Ethiopia, Ghana, Burkina Faso, Burundi, Central African Republic, Togo, Uganda, Zambia, Somalia, Sierra Leone, Senegal, Niger, Liberia, Guinea, Sao Tome and Principe, Mozambique, Gambia, Madagascar.
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The initiative was introduced in 1996. The IMF and World Bank work together with governments across the world to lower external debts of impoverished countries. Out of about 40 countries currently on the list, 33 are in Africa. This is just another prove that Africa is a very poor continent while the continent is endowed with several natural resources.
The immediate question the African should ask is why does Africa have all these natural resources, yet the continent is the poorest in the world.
There are other requirements for to be included on the heavily indebted poor countries’ list. Below are some of them.
■ Countries must have an established reduction strategy
■ countries must be eligible to borrow from the World Bank’s International Development Agency
■ Countries must have established track records of development reforms and sound poilcies
■ Only countries facing an unsustainable dept burden that cannot be addressed through traditional debt relief mechanisms can be admitted.
Source: Business Insider