African Development Bank Launches African Debt Managers Initiative Network to Address Debt Challenges in Africa
The African Development Bank’s African Development Institute has launched a new program called the African Debt Managers Initiative Network (ADMIN) to provide home-grown solutions to Africa’s debt challenges. The inaugural event took place in Addis Ababa under the theme of Developing and Deepening Domestic Debt Markets in Africa.
The Director of the African Development Bank, Coulibaly Abdoulaye, stated that the network aims to strengthen the debt management capacity of African countries’ officials and institutions to address debt challenges, restore macroeconomic stability, and promote inclusive growth. The growing financing needs for infrastructure development, poverty reduction, and other critical areas are driving African countries to increase their borrowing, leading to increased debt vulnerability.
As of April 30, 2024, 13 African countries are at high risk of debt distress, and 6 are already in debt distress. The meeting highlighted the importance of developing African domestic debt markets to provide cheaper and more stable sources of debt financing for development needs. Discussions focused on sound debt management frameworks, networking, and peer learning to support debt sustainability.
Former Director of Debt Management at South Africa’s National Treasury, Johan Krynauw, emphasized the need for African countries to work together to share knowledge and support each other on debt management issues. The session was attended by debt managers, capital market operators, commercial bankers, and regulators, who shared practical ways to develop and deepen domestic debt markets in Africa.
The initiative aims to empower African debt managers to work together and find solutions to local debt management challenges. The development of the African domestic debt market is seen as a crucial step in addressing debt vulnerability and achieving development goals. The event underscored the importance of collaboration and knowledge-sharing among African countries to effectively manage debt and promote sustainable economic growth.