Debt, sanctions key concerns as global trade bloc holds summit

Member countries of the Organization of the African, Caribbean and Pacific States, or OACPS, have identified growing debt burdens and existing economic sanctions as the main challenges aggravating the negative effects of the coronavirus pandemic among their people.

This conclusion was arrived at during a summit convened by Uhuru Kenyatta, the President-in-Office of the OACPS and President of the Republic of Kenya, on Wednesday.

In his opening remarks, Kenyatta presented the background against which the Extraordinary Inter-sessional Summit was being held, with 112,243 Covid-19 cases and 3,046 deaths across the regions of the OACPS as of May 31, 2020, and major economic disruptions to key industries and supply chains, reflecting a dire economic situation for members of the OACPS.

Speaking at the summit, which was held virtually, Kenyatta observed that "the debt of many member states continues to rise. 44 percent of low income and least developed countries are in debt distress or assessed as being at high risk of external debt distress. The Covid-19 pandemic and related global economic shocks will exacerbate this problem," Kenyatta said.

"At the national level, Covid-19 has led to a shrinking of fiscal space, while at the international level, the pandemic has weakened the pipeline of resources dedicated to development programs," Kenyatta added.

Led by Paul Kagame, Rwanda's president, OACPS leaders including South Africa's president Cyril Ramaphosa and Zambia's president Edgar Lungu called for the lifting of economic sanctions against Sudan and Zimbabwe.

In his address to the summit, Kagame called for the review and consideration of sanctions against the two African countries to support their ability to respond to the coronavirus pandemic. Kagame said the international community needs to lift the sanctions so as to enable Sudan and Zimbabwe apply their resources in protecting their populations from the adverse socioeconomic effects of the current health crisis.

"The effects of coronavirus will persist long after the virus is defeated, and the road to recovery will be long. Increased cooperation and mutual interdependence will be the hallmark of effective international response," Kagame said.

The meeting was also attended by OACPS development partners, led by France, Norway and Canada. Erna Solberg, the Prime Minister of Norway, said her country supports the debt moratorium issued by multilateral lenders and assured OACPS nations her country will remain a close partner throughout the crisis.

In his address to the summit via a recorded message, French President Emmanuel Macron challenged global lending institutions to go beyond current relief measures and consider debt cancellation for the most vulnerable countries.

Addressing the summit as a guest, Tedros Ghebreyesus, Director-General of the World Health Organization, pointed out the caseload in members of the OACPS was not as high as had been feared, with no cases in 12 of the OACPS member countries and 38 members having less than 500 cases.

However, Ghebreyesus warned OACPS members were still vulnerable for many reasons and maintained there was still a need for solidarity, preparedness and a comprehensive approach while maintaining essential health services.