Africa says debt moratorium is positive but falls short

Moves by rich countries to freeze debt repayment for poor nations grappling the coronavirus crisis are positive but fall far short of a real fix, African experts say.

The agreement on debt, announced by the Group of 20 wealthier nations, is a one-year freeze on payment of debt owed by 76 poor nations, 40 of which are in Africa.

Africa's overall debt stands at around $365 billion (336 billion euros), around a third of which is owed to China. The world's weakest economies will be able to free up precious cash for immediate needs but will still struggle under a mountain of debt, experts say.

"It provides a breathing space," said Hassane Boukar of a Niger citizens' group called AEC.

"There will be a lot of spending ahead in fighting the coronavirus pandemic," he said. "The fact that there is a moratorium helps these states to mobilise funds that they otherwise would have had to earmark for repaying debt."