Annual New Year School
Every year, on the first Monday of March, FONAA holds a New Year School where scholars, industrialists and stakeholders with interest in African American issues, international development and African diaspora matters come together to discuss issues of concern. This event brings participants from Africa and other parts of the world together and are hosted in different US city each year.
The topics that are discussed relate to FONAA projects and presents FONAA and its stakeholders the opportunity to consolidate the information and resources shared over the course of the year and peek into the future.
African countries face a myriad of challenges but issues like debt management has surged to the top of the pile so much that the New Year School present a forum for discussions to extend further challenges not specifically seen as a FONAA project.
On the issue of debt, some Africans are so concerned that it is now see as new form colonization. Some African countries have never paid down debt other than periods of debt forgiveness by the US and EU.
With new African mainly owed to China, and, with China declaring it does not favor debt forgiveness, where does this put African countries when it get to points that countries default?
The debt situation in Africa has worsened due to the collapse in the price oil. African countries turned to IMF for financial intervention to stabilize their economies as the pandemic hit.
The pandemic has brought to the fore the issue of debt level versus the debt service. Some sectors on the continent says the level of debt is not as important as the ability to service the debt, whilst comparing debt to GDP ratios.
However, if commodity prices stay low, then revenue generated would be below the amount needed to service loans and African countries would be borrowing to make loan payments.