Online Reporter
Richard Muponde
Zimpapers Politics Hub
THE African union (AU) has called for a coordinated continental approach to address Africa’s growing debt burden, saying collective action is critical to restoring fiscal sustainability and accelerating socio-economic development.
The call came at the three-day African union Dialogue on Debt Sustainability and Reform that ended in Harare yesterday, bringing together more than 300 policymakers, finance ministers, central bank governors, economists and development partners to deliberate on strategies for strengthening debt management across the continent.
Speaking at the official opening of the high-level dialogue, African union Commission Head of Economic Policy and Sustainable Development, Dr Patrick Ndzana Olomo, said Africa’s debt challenges required a unified response anchored on the implementation of the Common African Position on Debt.
He said nearly 20 African countries were facing varying levels of debt distress, a situation that was limiting governments’ capacity to finance key sectors such as health, education, infrastructure and climate resilience.
Dr Olomo said the continent should move beyond managing debt crises and instead pursue lasting solutions that promote sustainable economic growth, strengthen fiscal resilience and enhance Africa’s financial independence.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Harare dialogue represented an important milestone in advancing Africa’s collective efforts to reform the global financial system and promote sustainable debt management.
He said the Common African Position on Debt provided a framework through which African countries could engage international financial institutions with one voice while pursuing equitable and sustainable financing arrangements.
Professor Ncube said effective implementation of the agreed position would enhance Africa’s credibility with international financiers, create additional fiscal space and support increased investment in economic growth and social development.
African Capacity Building Foundation Executive Secretary Mr Mamadou Biteye said sustainable debt management should be complemented by stronger public institutions capable of managing public resources efficiently and transparently.
He said reducing debt levels alone would not be sufficient unless African countries also invested in institutional capacity, skilled professionals and sound governance systems capable of translating financial resources into inclusive and sustainable development.
