Date: Tuesday, 26th October 2021
Time: 1400hrs – 1600hrs (EAT)
Theme: Credit Enhancement Structures to curb Africa’s Rising Debt
Agenda: 8th Annual Investor Roundtable (Virtual)
Registration link: https://form.jotform.com/212711121592546
About the event:
In 2020, public debt in sub-Saharan Africa (SSA) increased sharply by more than 6% to reach an average debt-to-GPD ratio of 58%, the highest in close to two decades. The burden of debt service-i.e. interest payments on the other hand accounted for 20% of tax revenue on an average and up to 30% in some countries. That said, Africa’s rising debt level was already a subject of concern regionally and globally before the on-set of the pandemic.
Whereas the G-20 Debt Service Suspension Initiative (DSSI) has helped countries concentrate their resources in fighting the pandemic and safeguarding the lives and livelihoods of the most vulnerable, the debt repayment standstill expires in December 2021, and obligation to service debt and interest resumes thereafter- in spite of the significant short-term savings. Subsequently, significant challenges lie ahead especially for countries that are at high risk of debt distress. The option of the G-20 Common Framework has on the other hand raised concern especially among rating agencies, since the spirit of the Common Framework is that private debt relief should be delivered on the same terms as official debt. The question arising from these developments is whether Africa is caught in a vicious circle.
Save the date for this candid discussion as the ATI, along with some of our partners, discuss why global debt initiatives are not delivering desired results, and as we consider alternative solutions to the problem of African debt. These will include credit enhancement structures that support Governments debt management objectives, which potentially allows for refinancing of existing costly debts.
Contact: press@ati-aca.org
