Second Sovereign Debt News Update
A Flurry of African Sovereign Debt News brings to you regular updates on events and happenings in Africa that reveal how sovereign debt issues are engaged by the various stakeholders.
African Sovereign Debt Justice Network (AfSDJN)
The African Sovereign Debt Justice Network, (AfSDJN), is a coalition of citizens, scholars, civil society actors and church groups committed to exposing the adverse impact of unsustainable levels of African sovereign debt on the lives of ordinary citizens.
Convened by Afronomicslaw.org with the support of Open Society for Southern Africa, (OSISA), the AfSDJN's activities are tailored around addressing the threats that sovereign debt poses for economic development, social cohesion and human rights in Africa. It advocates for debt cancellation, rescheduling and restructuring as well as increasing the accountability and responsibility of lenders and African governments about how sovereign debt is procured, spent and repaid.
Focusing in particular on Kenya, Zambia, Zimbabwe, Mozambique, Nigeria and Senegal, the AfSDJN will also amplify African voices and decolonize narratives on African sovereign debt . Its activities include producing research outputs to enhance the network’s advocacy interventions. It also seeks to create awareness on and elevate the priority given to sovereign debt and other economic justice issues on the African continent and beyond throughout 2021.
A Flurry of African Sovereign Debt News
A Flurry of African Sovereign Debt News brings to you regular updates on events and happenings in Africa that reveal how sovereign debt issues are engaged by the various stakeholders.
Snapshot of Kenya's External Debt Over the Last Decade
The disclosures on Kenya's sovereign debt indebtedness so far indicate that there could very well be examples of hidden debt - particularly sovereign debt that may not be publicly or dully disclosed particularly to Parliament. This together with Kenya's increasing indebtedness means that Kenya's Parliament and civil society groups like the African Sovereign Debt Justice Network and OKOA Uchumi must carefully scrutinize as well as the 2021 National Debt Management Strategy Paper and all the accompanying disclosures. Kenya's Parliamentary Budget Office has recently noted that increased interest payments on debt have reduced spending on development and recommended rescheduling of domestic debt.
Reflections on the Current Reality of Africa’s debt landscape
The Covid19 pandemic has thus far had an unprecedented and devastating social, economic and health impact globally. It has recast the spotlight on debt sustainability, default and sovereign debt restructuring. For African countries, a pertinent question today is—what will be the impact of the pandemic on debt repayment and what are the new debt service initiatives that may be required (including debt relief, restructuring and other measures)?
Official launch of the African Sovereign Debt Justice Network
January 21, 2021
Afronomicslaw.org invites you to the official launch of the African Sovereign Debt Justice Network
Register to attend by clicking on this link: Zoom Registration
Date: January 26th, 2021
AfSDJN Mission Statement and Agenda
The African Sovereign Debt Justice Network (AfSDJN) is a coalition of citizens, scholars, civil society actors and church groups committed to exposing the adverse impact of unsustainable levels of African sovereign debt on the lives of ordinary citizens. The AfSDJN seeks to achieve this goal by advocating for debt cancellation, rescheduling and restructuring as well as increasing the transparency, accountability and responsibility of lenders and African governments about how sovereign debt is procured, spent and repaid.
Introducing the African Sovereign Debt Justice Network (AfSDJN)
A primary objective of the AfSDJN is to undertake research, advocacy, tactics and strategies around the changing nature of debt, globally and in Africa, which threatens economic development, social cohesion and several gains made in building social contracts in recent years. Afronomicslaw.org is grateful to Open Society Initiative for Southern Africa, (OSISA) Economic Justice Program and Open Society Foundation’s African Regional Office.
Hell Breaks Loose in Mozambique: Is this the beginning of the end of irresponsible Sovereign Borrowing? Or a wakeup call to address Benignity of the International Capital Markets?
In the meantime, since the re-entry of Mozambique into the international debt markets may take time, the poor communities may not have the wherewithal to survive that long. So, what is the last piece of the puzzle? An IMF arrangement with conditionalities? What conditionalities? My next piece intends to consider this.
Staying Claims: Debt Moratoria Beyond the Debt Service Suspension Initiative
We recognise that the current proposal is limited in resolving the longer-term debt burden of developing countries. The stay of enforcement does not introduce any changes in the substantive obligations contracted by the parties. Thus, the standstill will only temporarily suspend the execution and enforcement of eligible financial obligations during the designated period. Meanwhile, interest on the principal will continue to accrue. The proposal is also meant to be used as a ‘shield’ rather than a ‘sword’, i.e. the stay will only be triggered as a defence by the sovereign debtor in the event of a claim against it by a private creditor.
Prudent Debt Management and Lessons from the Mozambique Constitutional Council
August 5, 2020
About eight years ago, the government of Mozambique formed two companies, Proindicus and the Mozambique Asset Management. These two companies entered into loan agreements, valued at approximately $2.2 billion, with creditors including Credit Suisse and VBT Bank. Even though these debts were obligations of the state, some of these debts were hidden from the Mozambique parliament and public. Their existence was exposed in 2016 and precipitated a debt crisis in the country.