Sachs: Africa's development prospects are very bright

At the 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union in Addis Ababa, Ethiopia, CNBC Africa's Fifi Peters had a compelling conversation with Jeffrey Sachs, the Director for Center for Sustainable Development at Columbia University. Sachs, a renowned economist, shared his insights on Africa's economic development prospects and the challenges it faces. One key theme that emerged from the interview was the need for long-term debt for long-term development in Africa. Sachs emphasized that Africa's development requires 25 to 40 years of consistent investment to realize its growth potential. He highlighted the importance of shifting towards longer maturities for sovereign debt to align with the continent's growth trajectory. Despite the bright economic outlook for Africa, Sachs pointed out that the current short-term focus of credit rating agencies and investors hinders the continent's ability to secure long-term financing at favorable terms. He called for a paradigm shift towards evaluating African economies based on their long-term growth potential rather than short-term risks.