Economic Development in Africa Report

English
Frequency
Annual
ISSN: 
1990-5122 (online)
http://dx.doi.org/10.18356/8fb566f6-en
Hide / Show Abstract
The Economic Development in Africa report analyses major aspects of Africa´s development problems and policy issues of interest to African countries. It makes policy recommendations for action by African countries themselves and by the international community to overcome the development challenges that the continent faces.
Also available in French, Chinese
 
Economic Development in Africa Report 2016

Economic Development in Africa Report 2016

Debt Dynamics and Development Finance in Africa You do not have access to this content

English
Click to Access: 
    http://oecd.metastore.ingenta.com/content/8f8b7df9-en.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economic-and-social-development/economic-development-in-africa-report-2016_8f8b7df9-en
  • READ
Author(s):
UNCTAD
21 July 2016
Pages:
164
ISBN:
9789210580564 (PDF)
http://dx.doi.org/10.18356/8f8b7df9-en

Hide / Show Abstract

Africa has major development aspirations in the broader context of a global and continental economic development agenda. This calls for substantial financial resources at a time when the global development finance landscape is changing, from a model centred on official development assistance and the coverage of remaining financing needs through external debt, to a framework with greater emphasis on the mobilization of domestic resources. The Economic Development in Africa Report 2016 examines some of the key policy issues that underlie Africa’s domestic and external debt, and provides policy guidance on the delicate balance required between financing development alternatives and overall debt sustainability. This report analyses Africa’s international debt exposure and how domestic debt is increasingly playing a role in some African countries as a development finance option, and also examines complementary financing options and how they relate to debt.
Also available in French
loader image

Expand / Collapse Hide / Show all Abstracts Table of Contents

  • Mark Click to Access
  • Acknowledgements
    The Economic Development in Africa Report 2016: Debt Dynamics and Development Finance in Africa, was prepared by a team of UNCTAD contributors, headed by Junior Roy Davis, and composed of the following people: Bineswaree Bolaky, Ange Bella Ndayisenga, Laura Páez and Claudia Roethlisberger. The work was completed under the overall supervision of Taffere Tesfachew, Director of the Division for Africa, Least Developed Countries and Special Programmes of UNCTAD.
  • Abbreviations
  • Introduction
    Africa has major development aspirations in the broader context of a global and continental economic development agenda. This calls for substantial financial resources at a time when the global development finance landscape is changing, from a model centred on official development assistance and the coverage of remaining financing needs through external debt, to a framework with greater emphasis on the mobilization of domestic resources. The Economic Development in Africa Report 2016 examines some of the key policy issues that underlie Africa’s domestic and external debt, and provides policy guidance on the delicate balance required between financing development alternatives and overall debt sustainability. This report analyses Africa’s international debt exposure and how domestic debt is increasingly playing a role in some African countries as a development finance option, and also examines complementary financing options and how they relate to debt.
  • Addressing Africa's development finance needs
    This chapter first examines Africa’s growing financing needs and changes in the development finance landscape of Africa. It then highlights the financing requirements of Africa in the context of the Sustainable Development Goals and Agenda 2063, and concludes with a discussion about the scope and limitations of official development assistance as a source of development finance.
  • External debt dynamics and debt sustainability in Africa
    This chapter focuses on external debt in Africa and on current debt sustainability issues. The first part presents some definitions of external debt and the second part presents some stylized facts on external debt, followed by an analysis of the main drivers behind external debt accumulation. The third part outlines the major determinants of debt sustainability and analyses current debt sustainability frameworks. The final part concludes with a summary of the main findings.
  • Domestic debt dynamics in Africa
    A key development over the past decade has been an increasing reliance on domestic debt markets by African Governments to expand their net borrowing, in most cases reflecting a need to fill the gap created by a decline in official development assistance as a share of total external flows. Achieving high and sustainable levels of investment needed for Africa’s development will require a combination of foreign and domestic resources. This may increase ownership of the development agenda and enhance the effectiveness of strategies and the focus on sectors in which investment is most productive. At the same time, with domestic debt playing an increasingly important role, countries will face new risks as the numbers of creditors and debt instruments continue to expand, and domestic debt will become instrumental in assessing public debt sustainability owing to its size and swift growth.
  • Complementary modalities for financing development in Africa
    The previous chapters have shown that domestic and external debt are on the rise in Africa and that ensuring debt sustainability will pose a limit to further increases in debt. With dwindling traditional financing, the question arises as to how the increasing financing needs of the continent can be met. There is a wide range of complementary modalities of development finance that tap and leverage existing resources. These modalities range from public–private partnerships, sovereign wealth funds, remittances and diaspora bonds, GDP-indexed bonds and climate-related funds to the use of new special drawing rights allocations and international reserves, and policies stemming illicit financial flows.
  • Main findings and policy recommendations
    Africa’s multiple development aspirations face major challenges: enormous financing requirements in a changing financing landscape and rapidly rising public debt. As the continent embarks on its economic transformation agenda, the role of domestic debt is becoming increasingly important. In harnessing the various development finance resources, African countries will need to strike a balance between increased financing needs and overall debt sustainability.
  • Notes
  • References
  • Add to Marked List