Debt Sustainability & Transparency in Africa: AfDB Report

DRIVING DEBT SUSTAINABILITY AND
TRANSPARENCY ACROSS AFRICA The African Development
Bank, through the
Governance and Economic
Reforms department (ECGF),
is driving strategic
interventions to help
countries strengthen debt
sustainability, improve
transparency, build
institutional capacity,
support fair and orderly debt
restructuring, and innovate
financing tools so that debt
becomes a catalyst for
development rather than a
burden.
Core Pillars of Debt Management and
Transparency
•Policy Reforms: Strengthen legal frameworks, develop strategic debt policies,
and enhance parliamentary oversight of public debt.
•Capacity Building: Implement debt management systems and train officials on
debt analysis, risk management, and contract oversight.
•Debt Transparency: Promote timely and accurate disclosure to improve
accountability, investor confidence, and reduce hidden debt risks.
•Institutional Partnerships: Collaborate with governments, regional bodies,
and international organizations (e.g., Commonwealth Secretariat, OECD,
AFRODAD) to support sustainable borrowing.
•Leadership & Knowledge Management: Convene the annual Debt
Management Forum for Africa (DeMFA) and produce analytical reports and
policy papers on debt management.
Strengthening debt management and
transparency is essential to the Bank’s Ten-
Year Strategy, as it protects macroeconomic
stability, ensures responsible borrowing, and
secures fiscal space for investments that
advance the High 5s, the SDGs, and Agenda
2063 — enabling development to be financed
sustainably without burdening future
generations. To achieve this, the Bank
supports countries through five core pillars of
intervention:

To date, the Bank has achieved significant results through its governance
operations on debt:
Focus Area
Result
/ Achievement
Debt
-focused governance
operations
45
+ operations approved since 2021,
including
30
in countries in debt distress or high risk
of
distress
Capacity
strengthening
1,
500+ public officials trained in debt
analysis,
reporting,
risk management, and negotiation
Policy
and regulatory reforms
40
+ laws, policies and strategies adopted
to
strengthen
debt governance
Key Outcomes of the Bank’s Debt Governance Interventions
Transparency of public debt
data from government
official sources has
improved over the years,
although more progress is
required to ensure full
coverage — especially
regarding contingent
liabilities and state-owned
enterprises.
Debt Transparency: Improvements Made, Work Still Ahead

ECGF Projects Approved in 2023 with Debt Components (1/3)
Country Project Key Expected Results from Activities on Debt
Transparency
Central African
Republic
Revenue Mobilization &
Transparency Public
Policies Support Project
Quarterly
debt bulletins containing information
on
forgotten
loan contracts published
Comoros
Public Debt
Sustainability Support
Project (PASDP)
Debt
currency/exchange rate bulletin
produced;
public
debt management procedures manual
issued;
analytical
debt data integrated into budget;
secure
disbursement
procedures manual produced;
formal
loan
registration & portfolio management
guidelines
set
; multi-stakeholder transparency workshops
held;
public
dissemination of debt viability
analysis,
arrears
inventory & statistical bulletins.
Djibouti
Public Debt
Sustainability Support
Project (PASDP)
Validated
manual for debt information
exchange
across
institutions; improved archiving
and
digitization
tools; periodic analytical reporting
on
arrears
& domestic debt; integration of SOE debt
in
national
monitoring.
Mauritania
Public Enterprise
Governance Support
Project
Annual
public debt report produced and published
in
line
with international standards.
Mozambique
Economic Acceleration
& Governance Support
Program (EAGSP)
Updated
and published Medium-Term
Debt
Management
Strategy (2023-2025).

ECGF Projects Approved in 2023 with Debt Components 2/3
Country Project Key Activities on Debt Transparency
Mozambique
Debt Sustainability
Technical Assistance
Project
Capacity
building for front/middle/back
offices;
updated
operating manuals;
strengthened
ability
to leverage climate-linked
debt
instruments
; annual borrowing plans prepared.
Somalia
Institutional Support for
Economic Governance
Project
Deployment
of Commonwealth Meridian
system
and
ICT upgrades for debt management;
debt
statistics
reports published; improved DMO
skills
in
transparency and management.
The Gambia
Public Financial
Management &
Economic Reform
Program (PFM-ERP)
Updated
and published Medium-Term
Debt
Management
Strategy (2023–2027) on
Ministry
website
.
Zimbabwe
Institutional Support
Project for State
Enterprises &
Parastatals Reform
(ISSER)
Consolidated
SOE and parastatal
financial
reports
; staff trained in reporting and
oversight
tools
; targeted audits completed.
Ghana
Fiscal Consolidation &
Economic Recovery
Program
Annual
debt reports produced via the
Meridian
system
and publicly released; medium-
term
debt
strategy published.

ECGF Projects Approved in 2023 with Debt Components 2/3
Country Project Key Activities on Debt Transparency
South Africa
Energy Governance &
Climate Resilience
Programme
Circular
issued to ease license
revocation
process
for non-paying municipalities,
reducing
fiscal
risk exposure.
Republic of Congo
Economic
Diversification Support
Program – Phase I
Draft
law on organization of public
enterprises
validated
(including transparency &
gender
criteria)
; mandatory transmission of
SOE
financial
statements launched.
Sao Tome & Principe
Institutional Support
Project for Customs
Administration & Public
Expenditure
Management (ISP-
CAPEM)
Staff
of DMO and National Debt
Committee
trained
on MTDS, DSA and reporting
(with
≥30
% women participation).
Kenya
Competitiveness &
Economic Recovery
Support Programme –
Supplementary
Financing
Annual
Fiscal Risk Committee reports
published
for
stronger SOE guarantee oversight
and
exposure
mitigation.