At the start of 2023, the Republic of Ghana became the fourth African (fifth globally) to apply for the G20s Common Framework for debt relief and restructuring. This came about following the country defaulting on it Eurobond and was swiftly accompanied by a downgrade by  credit rating agency Fitch. The Republics of Chad, Ethiopia, and Zambia have suffered a similar fate since 2020. Across the continent, several countries are beginning to show similar symptoms that indicate either defaulting or needing to apply to G20 Common Framework. This situation is graver than what meets the eye. Africa’s debt burden is directly becoming a burden on Africans who are having to pay the price both irresponsible borrowing and equal irresponsible lending. Yet, despite the debt burden, institutions like the International Monetary Fund (IMF) continues to provide loans under the guise of “highly concessional” loans to our African governments. Africa is caught in a debt trap that extends beyond contraction in fiscal policy space. Africa is trapped in a low productive capacity trap that is entrenched by the neo-liberal economic order that blocks any attempt for Africa to produce and transform its economies in manufacturing and industrial hubs for global production.

Africa’s perpetual crisis mode and dependency policy making approach thus needs a rethink. At AfCoDD II the keynote address posited while debt was not in itself bad, in its current form, is the perpetuation of colonisation in Africa. It is perhaps the single most important variable that has impacted on the way in which neo-colonialism has been entrenched on the African continent. To escape this vicious cycle, we as Africans and as Africa need to find ways out of the short-termism of macroeconomic planning, enhance production and industrialisation, increase domestic resource mobilisation, and reinforce African agency both inwardly and externally. At a more fundamental level, this debate problematises the function of debt and related power differentials in late capitalism and calls into question development paradigms, notably the hegemonic infrastructure-led development regime, that have sustained Africa’s financial dependency into the 2020s.[1]

To achieve these four proposals, AfCoDD III presents the “4Rs for Africa the Rule-Maker: Reimagining, Rethinking, Reorganising, and Remobilising for an African World Order.”

Together with our partners, AFRODAD welcomes you all to AfCoDD III! The Conference webpage can be found here.

[1] Debt, distress, dispossession: towards a critical political economy of Africa’s financial dependency by Tim Zajontz;,Pages 173-183

The AFRODAD 2021 Inaugural African Conference on Debt and Development outcome declaration, known as the Harare Declaration, called for, “reforming of the global debt architecture in a manner that equalises the loan contraction processes – including reform of debt sustainability frameworks and credit ratings assessment, and the establishment of an African Accountability Mechanism that will act as the foundation for enhanced transparency, accountability, and governance of Africa’s debt architecture.” According to the latest debt statistics, African countries that have or are on course to reach the HIPC completion point for debt cancellation or relief are actually now categorised as ‘high risk of debt distress’.

Ghana’s Finance Minister Ofori-Attah stated “The west should hang its head in shame, […]There was a complete distance between the resources available and what was applied [beyond advanced economies] to a problem that was global. […] We need to seriously evaluate whether the rules laid down [then] are the most appropriate going forward.”

Therefore, it is timely that Africa and Africans advance the reform agenda of the debt architecture which needs to go beyond finance. Given the proliferation of the creditor market, any reform should be extended to include accountability, transparency, and governance and must integrate emerging bilateral, multilateral, and commercial and private lenders. Resetting how the global economy works should address systemic bad behaviour that induces profiteering from indebtedness, the generation and movement of illicit financial flows from Africa to global tax havens.

1. Political – This pillar will focus on Africa’s engagement and role in the current debt and financial architecture as a rule taker and debt taker and investigate building a new political consensus for a new debt architecture where it is a rule maker and debt negotiator. Africa’s experience with debt resolution has historically been disorderly and protracted. It will also explore the idea of Africa’s foreign policy intersection with economic, trade, security policy and how to go about developing this policy framework
2. Research and Ideation – This pillar is about contributing to the Pan-African knowledge and intellectual perspectives of debt, development finance, and structural transformation of Africa. A journal of selected papers for presentation will be launched at the AfCoDD.
3. Public Mobilisation #SisiNdioTuko – This pillar is about national civic movement building in a sustained manner beyond the current debt crisis. Citizens of the developing countries and their governments need to grab the opportunity presented by COVID-19 to demand new debt resolution mechanism that addresses the legality, legitimacy, and sustainability of debts.

1. Call for reforms of the global financial architecture that governs public debt: The principles and mechanisms that protect debtor countries from profiteering creditors need to be revisited based on suspension, renegotiation, restructuring and cancellation. This includes considering changing of the creditor landscape and the proliferation of debt instruments available to African governments. A new sovereign debt restructuring mechanism that would be binding on all creditors, including commercial creditors, and that would make it difficult for hold-out creditors to prevent sovereign debt workouts.
2. Seek meaningful debt solutions: The financial squeeze African governments find themselves in has been worsened by the prolonged effects of the global Covid-19 pandemic. The pressures of debt repayment amidst declining revenues are forcing African governments to trade off protecting citizens from the vagaries of the pandemic in favour of paying off creditors. Support the United Nations Conference on Trade and Development’s proposal for an International Developing Country Debt Authority that would oversee comprehensive temporary standstills.
3. Call for the sealing of financial leakages: The African Union needs to focus on closing the financial leakages including addressing illicit financial flows, and supporting initiatives that spur domestic resource mobilisation to fight the pandemic. The issue of Illicit Financial Flows, Debt, Tax Havens, and aggressive corporate culture; and Privatisation of development is a growing concern. It is estimated Africa could gain $89 billion annually by curbing illicit financial flows. The status quo that governs global finance is skewed, with illicit financial flows representing a double theft: an expropriation of funds that also robs billions of a better future.

The AfCoDD III will be held in-person and live streamed on all our social media platforms.

The AfCoDD will be held over 3 days between 30^th August and 1^st September 2023 in Dakar, Senegal; and will be delivered as a physical conference. For more information, please contact John Oduk [email protected] and Aurore Sokpoh [email protected]