Back in 2003 AFRODAD took an initiative of developing a guidelines for borrowing responsibly and it was named the AFRODAD Borrowing Charter. It has just been revised and it is rightly named the African Borrowing Charter. The change to African in the title is that the charter has so much potential to guide any government that would be willing to use it.
Calling it the AFRODAD charter was a bit limiting and one could think it’s perhaps a small booklet with organizational guidelines and this would be so far from reality. The revision and renaming does not change the fact this charter is AFRODAD’s initiative. It fits as a publication but when one takes a close look to it, the charter also stands as an initiative.
As stated in the charter, its aim is to sustainably balance public debt levels with the necessity to accelerate inclusive development and enhance public service delivery in Africa.
The Borrowing Charter aims at:
- Contributing to improvements in the transparency of the political, institutional and administrative processes.It also seeks to enhance the accountability of State actors involved in:
- The contraction and management of public debt;
- The issuance of public guarantees;
- The selection and implementation of debt financed projects; and
- The formulation and execution of overall fiscal policy, within the context of strengthened legal frameworks and the rule of law.
After its revision, a validation workshop which gathered scholars and other practitioners, was held in Lusaka-Zambia and the Charter was strengthen by their valuable input. The next step for AFRODAD is to popularize it in different parts of the continents while striving to see it as the main African guidelines fully acknowledged and enforced by the African Union, other intergovernmental bodies and African Governments.