Renowned economist and policy analyst Professor Jeffrey Sachs has stated that short-term loans with tenures ranging from 7 to 10 years and high-interest rates pose liquidity problems for Africa, as they fail to consider the continent’s long-term growth potential.
He said while speaking in an interview with CNBC Africa on the sidelines of the Africa Union summit in Addis Ababa, Ethiopia where he faulted international lenders and credit ratings agencies for having a narrow mechanical perspective of the continent.
According to him, the strategy Africa should adopt is long term growth for long term development stating that the continent can growth by at least 7% for the next 40years.
He further stated that countries, credit rating agencies, international lenders should key into the right strategy which is long-term borrowing for long term growth.
