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African Development Bank Launches African Debt Managers Initiative Network (ADMIN)

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In a bid to address rising debt vulnerability and distress across Africa, the African Development Bank Group is spearheading the creation of the African Debt Managers Initiative Network (ADMIN). The network aims to bring together experts to devise home-grown solutions to the continent’s debt challenges.

Eric Ogunleye, Acting Director and Division Manager for Policy Management at the African Development Institute, expressed that ADMIN will play a pivotal role in building capacity for institutions and practitioners, fostering responsible borrowing, and enhancing transparent debt management. Ogunleye highlighted the importance of identifying common areas for policy dialogue and capacity building, ultimately facilitating interventions by the Bank and other institutions devoted to public debt management issues in Africa.

Prior to the COVID-19 pandemic, Africa witnessed a rapid increase in its debt burden, with debt service payments averaging about 18 percent of total government revenues. Factors such as a shift towards costly commercial debt, less transparent loan terms, domestic arrears accumulation, and rising contingent liabilities have fueled this debt accumulation trend.

ADMIN aims to partner with development organizations engaged in debt sustainability and public financial management, mobilizing innovative debt financing, implementing robust debt management https://newsonafrica.com/wp-content/uploads/2021/01/Mncedzi-Ngomane.jpgistration and reporting systems, and conducting debt sustainability and risk assessments.

Patience Oniha, Director General of Nigeria’s Debt Management Office, stressed the significance of an African debt managers’ network, providing a platform for practitioners to share challenges, explore opportunities, and advance public debt and financial management. The initiative is part of the broader efforts by the African Development Bank to guide debt management across the continent.

Sources from www.afdb.org