The African Development Bank (AfDB) Group has launched a comprehensive training initiative aimed at supporting 22 transitional or fragile African states in enhancing their debt management capabilities. This announcement was made in a statement released by the bank in Abuja.
The initiative, organised by the Public Finance Management Academy for Africa (PFMA) under AfDB’s African Development Institute, inaugurated the maiden edition of the PFMA Spotlight on Public Debt Management in Transition States. This two-day policy dialogue focused on promoting sustainable debt management practices tailored to the specific needs of Africa’s most vulnerable countries.
The program aims to strengthen institutional capacities within these nations to effectively manage debt and foster the financial resilience necessary for sustainable development. It convened key stakeholders including heads of debt management offices, treasurers, accountants general, revenue authority heads, central bank representatives, supreme audit institutions, anti-corruption agencies, civil society organisations, academia, private sector leaders, lawmakers, and other relevant actors from transition states.
Ethiopia’s minister of state for finance and economic cooperation, Semereta Sewasew, acknowledged progress in debt management across the continent but highlighted ongoing challenges in many transition countries.
She praised the AfDB for designing a training program aimed at enhancing these countries’ capacities to manage debt prudently, increase debt productivity, and restore economic resilience, stability, and growth.
Sewasew commended the AfDB as a steadfast partner in Ethiopia’s efforts to improve its economy and address debt challenges, pledging continued collaboration to support similar programs across the continent, promoting transparency and sustainability in debt management.
AfDB’s deputy director-general for East Africa and director-general designate for Nigeria, Abdul Kamara, emphasised that the training forms part of the bank’s special project titled: “Strengthening the Capacity of Transition States for Effective Management and Mitigation of Debt Distress Risks.” This project, operational from April 2023 to March 2026 under the Transition Support Facility, aims to empower African transition countries facing debt challenges.
Director of the African Development Institute, Eric Ogunleye, emphasised the need for these countries not to merely accept loans but to be empowered to contract, negotiate, and utilise loans effectively to enhance the quality of life for their citizens.
