ABSTRACT
This paper explores the limitations of traditional sovereign debt management in Africa and introduces innovative strategies to address these challenges. It critically assesses current practices, identifying their inefficiencies and inadequacies in meeting the unique needs of African economies. The findings reveal a need for more flexible, context-specific approaches that consider the diverse economic landscapes of African nations. Additionally, it recommends a shift towards models that emphasise sustainable debt levels, local economic conditions and more inclusive stakeholder engagement. These strategies aim to provide African nations with more resilient and adaptable frameworks for managing sovereign debt, thereby fostering long-term economic stability and growth.
Acknowledgements
This paper is derived from a policy paper written under the auspices of the African Sovereign Debt Justice Network (AfSDJN). The author acknowledges that the comments of the editors of African AfSDJN and that of the anonymous peer reviewers greatly improved this paper.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 According to the World Bank in 2021, low-income countries were those with gross national income (GNI) per capita of $1085 or less, while low-middle-income countries were characterised by an economy in which the GNI per capita was between $1086 and $4255. The former is constituted by Afghanistan, Burkina Faso, Burundi, Central African Republic, Chad, Democratic Republic of the Congo, Eritrea, Ethiopia, Gambia, The Guinea, Guinea-Bissau, Democratic People’s Republic of Korea, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, Sierra Leone, Somalia, South Sudan, Sudan, Syrian Arab Republic, Togo, Uganda, Republic of Yemen and Zambia, while the latter is composed of Algeria, Angola, Bangladesh, Benin, Bhutan, Bolivia, Cabo Verde, Cambodia, Cameroon, Comoros, Congo, Rep., Cote D'Ivoire, Djibouti, Egypt, Arab Rep., El Salvador, Eswatini, Ghana, Haiti, Honduras, India, Indonesia, Iran Islamic Rep., Kenya, Kiribati, Kyrgyz Republic, Lao PDR, Lebanon, Lesotho, Mauritania, Federated States of Micronesia, Mongolia, Morocco, Myanmar, Nepal, Nicaragua, Nigeria, Pakistan, Papua New Guinea, Philippines, Samoa, Sao Tome and Principe, Senegal, Solomon Islands, Sri Lanka, Tajikistan, Tanzania, Timor-Leste, Tunisia, Ukraine, Uzbekistan, Vanuatu, Vietnam, West Bank and Gaza and Zimbabwe (The World Bank (Citation2022c); (Citation2022d)).
2 According to the IMF (Citation2014, 245), these are creditors that are neither governments nor public sector agencies and include private bondholders, private banks, other private financial institutions, manufacturers, exporters and other suppliers of goods that have a financial claim.