AFRODAD is concerned with ensuring that the African continent does not slide back into being heavily indebted. It is therefore focusing on influencing African governments to institute and implement policies and practices for sustainable development and eradication of poverty through development and implementation of sustainable debt policies; transparent, accountable and efficient mechanisms for mobilization and utilization of domestic resources and effective use of international public finance. The work is axed on 3 thematic areas and here we look at DEBT MANAGEMENT.
Strategic Objective 1: To improve government transparency and accountability on public debt borrowing.
Strategic Objective 2: To contribute to the establishment of a Fair and Transparent international sovereign debt restructuring mechanism
Strategic Objective 3: To strengthen inclusive, transparent and accountable public debt borrowing and loan contraction processes
Strategic Objective 4: To influence effective management of public domestic debt resources by African governments
The thematic goal of AFRODAD Debt Management Portfolio is “to contribute to the development and implementation of sustainable debt policies and practices in Africa”. African countries debt sustainability continues to be threatened by falling commodity prices, a slowing Chinese economy, declining global demand for exports and the absence of a fair, transparent sovereign debt restructuring mechanism.
When a country is heavily indebted, the stress of meeting national needs increase as well. So factors like health, education, nutrition get negatively affected. The mortality of children and new-born increases; incidences of tuberculosis and higher numbers of death from HIV/AIDS get recorded while the quality of education decreases to mediocrity at times.
AFRODAD continues to urge governments to initiate measures to mitigate the risk through prudent management of debt resources and transparent loan contraction processes.