Securing Sustainable Solutions to the African Debt Crises

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Thematic Focus Area 2: Debt Management

 

Strategic Objective 4: To influence the effective management of public domestic debt resources by African governments

 

From the domestic debt management studies carried out in the previous phase, it is evident that domestic debt borrowing is continuing on an upward trend both as a percentage of total public debt and also as a percentage of GDP. Even in countries where domestic debt is less dominant than external debt, domestic debt servicing is accounting for a larger proportion of both government revenue and government expenditure.  In addition, unlike external debt, there are currently no internationally agreed thresholds for assessing domestic debt sustainability, which implies a gap that has to be addressed respectively.

AFRODAD will continue to influence African Governments to formulate and/or revise debt management policies that will allow effective management of public domestic debt. AFRODAD will also advocate for governments to devise policies and frameworks that enhance the development of financial markets.