By The East African
The World Bank has raised the red flag over the high cost at which Kenya and other African countries are borrowing commercial loans, warning of future repayment difficulties if the debts are not invested in productive projects.
The World Bank Vice-President for Africa Hafez Ghanem, in a wide-ranging exclusive interview with the Business Daily, indicated that Kenya’s debt level has not yet reached a tipping point but raises concern over low-yielding investments that do not generate enough tax revenue to repay the loans.
“I worry about increased indebtedness in Africa,” Dr Ghanem said in an interview shortly after meeting with President Uhuru Kenyatta at State House, Nairobi, this week.
“If a country wants to avoid a debt crisis, you need to make sure that the cost of borrowing is lower than the return on investment.”…Read more>>
