In many African countries, the tontine is a popular collective savings system which has for years enabled those to whom banks do not lend to finance a project or an emergency. In Cameroon, start-ups have brought it into the digital age in recent years. There is an urgent need for reforms to the “unjust” global financial system, which penalises African nations with high borrowing rates, leaders said at a major African economic gathering in Kenya this week.
To “transform Africa” — the theme of this year’s AfDB annual meetings in Nairobi — governments across the continent need vast financial resources, Kenyan President William Ruto said at an official ceremony on Wednesday. After several years of restricted access to international markets, regional economic powerhouse Kenya was able in February to raise $1.5 billion in a new Eurobond at around 10 percent interest.AfDB president Akinwumi Adesina of Nigeria also criticised the “so-called Africa risk premium” which meant countries on the continent were forced to borrow funds at higher rates than other nations with similar credit ratings.