Is There a Different Way of Approaching Debt in Africa?
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Sub-Saharan Africa’s debt crisis had been building up since the 2008/2009 crash and accelerated following the 2014 oil shock to the point that, even before the Covid-19 pandemic, one third of countries in the region were either in or at risk of debt distress. With the added pressure of Covid-19, the International Monetary Fund now estimates that the region needs to find an additional $345 billion of funding through 2023. Though the G20 has extended the Debt Service Suspension Initiative through to June 2021, for many countries in Sub-Saharan Africa the support available falls far short of the needs. Already Zambia has defaulted while oil dependent nations sit in a precarious position and South Africa’s debt is in danger of hitting 10% of GDP. In this webinar, we will discuss how multilateral institutions can go further to meet their promise to support the world’s poorest economies and explore the role of private sector lenders and capital markets in supporting sustainable fiscal balance sheets.
Discussion points:
Are multilateral development banks doing enough to support debt sustainability in Africa?
Does the G20’s Common Framework for Debt go far enough on debt forgiveness for low-income countries?
Is there a risk that debt relief could adversely affect African Eurobonds?
What role does the development of local capital markets have in fiscal rebalancing?
What more can be done to support the repayment of debts to private creditors?
What measures can be taken to improve domestic revenue collection?
What long-term solutions are on the table to restructure African debt?
Which countries are most at risk of following Zambia into default?
Confirmed Moderator:
Confirmed Speakers:
