The African Development Bank Group and the Debt Management Office have revealed that they are seeking to tackle Nigeria and the African continent’s debt challenges through the formation of a debt managers network.
Debt sustainability has reached critical levels in several African countries due to increasing public expenditure pressures on debt accumulation.
According to the African Development Outlook 2022, 23 African countries reached a high risk of debt distress at the end of February 2022 (16 at high risk and seven already in distress). Of the nine low-income countries in debt distress globally, eight were in Africa; at the same time, of the 27 LICs at high risk of debt distress globally, 13 were in Africa; and of the 26 LICs at moderate risk of debt distress globally, 17 were in Africa, the outlook indicated.
In a bid to tackle the issue, AfDB said it is facilitating the establishment of the African Debt Managers Initiative Network which will bring together experts to find home-grown solutions to the continent’s debt challenges.
According to a statement on the website of the continental lender, the Acting Director and Division Manager for Policy Management at the African Development Bank’s African Development Institute, Eric Ogunleye, told debt managers from across Africa that the network would facilitate capacity development for institutions and practitioners on the continent, in particular, reorienting them towards responsible borrowing and transparent debt management.
Speaking at a meeting in Abuja to advance the formation of the network, Ogunleye said, “The ADMIN will help identify and raise awareness of common areas for policy dialogue and capacity building for debt management and sustainability in the African Development Bank’s regional member countries and facilitate interventions by the Bank and other institutions working on public debt management issues in Africa.”