THE African Development Bank (AfDB) Group is planning to launch a debt management forum for Africa (DeMFA).
DeMFA is a new platform aimed at promoting high-level dialogue on debt productivity and sustainability across the continent.
A statement by the bank on Sunday, December 15, said the maiden policy dialogue on the initiative would take place on Monday and Tuesday, December 16 and 17 respectively, in Nigeria’s capital, Abuja.
The policy dialogue is themed: “Making Debt Work for Africa: Politics, Practices and Options.”
The launch will bring together Africa’s ministers of finance, central bankers, debt managers, policymakers, experts and relevant stakeholders.
Participants will exchange views and lessons on challenges related to Africa’s debt vulnerabilities.
According to the bank, DeMFA is a critical response to the continent’s rising public expenditures, declining domestic revenues, rising debts, and debt servicing costs.
“The root causes of Africa’s lingering debt problems are low economic productivity, weaknesses in governance, and internal institutional capacity to mobilise revenues and manage debts productively,” the bank said.
The ICIR reports that the forum is expected to amplify African voices and perspectives on debt matters.
It will provide a channel for knowledge-sharing, advocacy and capacity development on debt management.
In addition, it will leverage partnerships with multilateral and bilateral development institutions.
The launch of DeMFA is part of AfDB’s strategic approach to supporting its regional member countries in managing their debts productively, responsibly and sustainably.
The bank has developed various policy and strategic instruments to address Africa’s debt challenges.
These instruments include the multidimensional action plan for the management and mitigation of debt distress risks in Africa.
Others are the sustainable borrowing policy; and the strategy for economic governance in Africa.
The ICIR reported the AfDB’s earlier call for an overhaul of the global financial architecture that would see African countries’ access to ‘concessional loans’ devoid of debt crisis.
The AfDB made the call in its African Economic Outlook 2024 report released on Thursday, May 30.
The report made bold proposals to reform the global financial architecture, expressing worry over credit risk exposure for most African countries.
It stated that giving Africa a greater voice in multilateral development banks and international financial institutions reflected the continent’s growing share of global gross domestic product and rich natural resources.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.