• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Thursday, August 7, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

AU ropes debt management into Agenda 2063

Debt

The Matters Press by The Matters Press
September 12, 2023
Reading Time: 3 mins read
0
22 African nations in debt crisis

The African Union (AU) is pitching what it touts as a local solution to survive mounting debt for members. And the proposals could be tabled to member states as soon as the next summit, signalling the latest concerns about the potential of debt to drain economic targets.

RELATED POSTS

‎Obi’s One-Term Proposal, a gambit to grab power at all costs -Group ‎

National Single Window initiative, a major step for efficient cross-border trade – TMSG

‎Group celebrates 45% increase in federal revenue in just one month

The revelations emerged last week at a conference on debt in Dakar, Senegal where officials explained the policy direction.

Dr Patrick Dzana Olomo, the Policy Officer for Investment and Resource Mobilisation, Economic Affairs Department of the African Union Commission blamed Africa’s mounting debt on failure to put in place clear mechanisms on how to handle borrowed funds.

“As the AUC, we are setting up the African Debt Mechanism that will be adopted next year which will be a platform that will allow us to have information on debt and also to plan on how countries will engage in debt negotiations before getting the loans,” said Dr Olomo at the ‘African Conference on Debt and Development’, an annual forum.

While the decision to establish some form of debt observatory was announced earlier this year, African Union members are expected to adopt it from January 2024 to be in line with AU’s Agenda 2063.

“It will also guide African countries on how they are going to engage in discussions when it comes to debt treatment. The AUC is playing that economic role of bringing together African countries to address issues related to debt,” said Olomo.

Experts in Dakar said Africa needs some form of profile table for creditors and debtors, enabling both sides to decide how to extend privileges.

Dr Ohio Omiunu, a professor of international law at Kent Law School (UK) and an editor at the AfroconmicsLaw, a portal on public investments policy, said the debt crisis requires a mechanism that brings all creditors on the debt table.

“Another option is the need to have a mechanism that is binding on all creditors. Currently the common framework does not bring the private creditors on the table,” said Dr Omiunu.

“Debt forgiveness should also be one of the options on the table. We have just come out of the Covid pandemic and therefore the very reason we need to bring the debt forgiveness on the table.”

Africa currently stands at the crossroads of two pressing challenges: a mounting debt crisis, and the urgent need for financing to combat climate change.

Rising rates are hurting some of its brightest economic stars as the rich countries renege on their promises to help fight debt.

As of 2022, Africa owed above $600 billion to external creditors, with an approximate $69 billion in debt service by the end of 2023.

Previously Africa’s sovereign debt was mostly acquired through loans from IFIs and bilateral lenders.

Since last year, five countries (Zambia, Ghana, Chad, Ethiopia, and Sri Lanka) formally defaulted on their national debt and applied to the G20’s Common Framework to resolve their debt crisis.

Across the continent several countries are beginning to show similar symptoms that indicate either defaulting or needing to apply to G20 Common Framework, some debt relief project by the richer lenders.

“Debt has risen cumulatively to over a trillion US dollars on the continent and this is quite a significant amount when you think about where the continent lies in social economic indicators,” said Jason Rosario Braganza, Executive Director of the African Forum and Network on Debt and Development.

Civil society leaders also called for proper utilization of debt to avoid using debt for recurrent expenditure rather than for development.

“We need to use our debt to develop infrastructure, improve health, agriculture and education sectors rather than waste on projects that largely attract corruption.”

In the just concluded Nairobi Climate Change summit, President William Ruto appealed to richer countries to reduce financial demands on very indebted African countries by calling for the extension period for countries’ debt repayments.

“We don’t want to suggest we want a debt write-off. No, we want to pay. One way would be to allow debt repayments to be extended and for a decade-long grace period to be introduced, allowing money to be invested elsewhere so that instead of spending billions of dollars paying debt this year, we use that to do other things. And then in 10 years we would have stabilised our economies,” said Ruto.

The EastAfrican

Tags: AUDebt
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Obi, PDP candidate advises Buhari to increase tempo
Economy/Technology

‎Obi’s One-Term Proposal, a gambit to grab power at all costs -Group ‎

August 7, 2025
Importers face delays, higher costs on Red Sea woes
Economy/Technology

National Single Window initiative, a major step for efficient cross-border trade – TMSG

August 4, 2025
Chatham House stance on Nigeria’s economy, a non-biased assessment of  reforms
Economy/Technology

‎Group celebrates 45% increase in federal revenue in just one month

July 28, 2025
POLICY STATEMENT 027 BY THE INDEPENDENT MEDIA AND POLICY INITIATIVE (IMPI)
Economy/Technology

Alleged Wasteful Turn Around Maintenance (TAM) of Refineries: Setting the records straight

July 25, 2025
Dangote Fertilizer in gas supply deal
Economy/Technology

IMPI seeks forensic audit of refineries from 2000 to 2023 ‎ ‎

July 25, 2025
Nigeria’s Dangote refinery will cut Africa’s petrol import by 36%
Economy/Technology

‎ADC erred, APC administrations never spent $18bn on refineries-IMPI ‎

July 25, 2025
Next Post
Pension assets records N1.77trn increase in first half

Uganda turns to local market for funding after freeze

Nigeria floats $4bn Eurobonds

Kenya now makes U-turn on $2b Eurobond buyback plan

Recommended Stories

Chinese investors to cultivate 10,000 hectares of rice in Yobe

Niger seeks FG’s partnership wot IFAD to promote rice, cassava value chain

October 17, 2023
Minimum wage a reality – Labour

NLC fights Industrial Court

June 7, 2023
Job loss fear confirmed as more AI tools launch

Nigeria, Asia Arab Investment to Digitized transportation Databank project

February 2, 2024

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • ‎Obi’s One-Term Proposal, a gambit to grab power at all costs -Group ‎
  • National Single Window initiative, a major step for efficient cross-border trade – TMSG
  • ‎Group celebrates 45% increase in federal revenue in just one month

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us