By BUUMBA CHIMBULU in Maputo
PARTICIPANTS at the fourth African Conference on Debt and Development (AfCoDD IV) in Maputo have critically analysed the merits and demerits of the G20 common framework, as they strive to find alternative solutions to the debt crisis Africa is facing.
Panellists on the G20 Common Framework and the Development Finance Landscape in Africa: Impact on the Realisation of Feminist Aspirations to Public Debt Management in Africa session critiqued the framework’s effectiveness and explored alternative solutions, with a focus on feminist approaches to public debt management.
Among the panellists was Isaac Mwaipopo, Executive Director of the Centre for Trade Policy and Development, who shared Zambia’s experience as one of the first to seek debt treatment under the framework.
Mr Mwaipopo shared how the process of getting the debts to be resolved under the G20 common framework, describing it as being tedious for Zambia.
He highlighted several challenges, including the lengthy duration of negotiations, the complexity of dealing with multiple creditors, and the lack of mandatory private sector participation.
Zambia recently announced a deal to restructure about $3 billion of its debt, but Mwaipopo noted that significant issues remain.
“We still have a significant portion of our debt, about three billion that has not yet been finalised in terms of finding a solution” he explained.
Transparency also emerged as a key concern, according to Mr Mwaipopo, stating that the non-disclosure agreements signed during negotiations made it difficult for civil society organisations to access information about the process.
“We are mostly left to interact with the outcomes after they were done,” he said, calling for more openness in future debt restructuring efforts.
Dr. Yungong Theophilus Jong of AFRODAD, who moderated the session, set the tone by highlighting the urgency of the debt crisis facing many African nations.
Dr Jong said the continent had ended up with cosmetic solutions, referring to past initiatives like the Debt Service Suspension Initiative and special drawing rights allocations that have failed to adequately address the continent’s debt challenges.
Meanwhile, Emmanuel Owusu-Sekyere, Director of Research, Policies, and Programs at the African Centre for Economic Transformation in Ghana, offered a more positive assessment of his country’s experience with the Common Framework.
“Ghana is very lucky in that sense,” he said, noting that creditors quickly formed a committee and provided assurances to the International Monetary Fund.
However, Dr Owusu-Sekyere acknowledged the significant impact of debt restructuring on Ghana’s domestic financial sector.
“The stability of the financial sector is very critical,” he said, adding that Ghana is hoping for a US$2.4 billion World Bank fund to stabilise its banking sector.
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