The Debt Sustainability Framework, Credit Ratings and Africa's Risk Premium:From Diagnosis to Reform

​The Debt Sustainability Framework, Credit Ratings and Africa’s Risk Premium: From Diagnosis to Reform

​Hosted by the African Union, Development Reimagined and the African Centre for Economic Transformation.

​This high-level discussion will examine how debt sustainability and sovereign credit risk are assessed for African countries, and how existing methodologies may contribute to higher borrowing costs and reduced fiscal space for development. Following the recent approval of reforms to the IMF-World Bank Low-Income Country Debt Sustainability Framework, the discussion will explore what further changes are needed to ensure assessments better reflect African economic realities, development needs and future repayment capacity.

​The event will also consider how Debt Sustainability Framework and credit rating methodologies interact to reinforce Africa’s risk premium, and how the Common African Position on Debt can provide a framework for advancing African priorities in global debt governance. The discussion will conclude by identifying a focused set of priority reforms and practical actions for African governments and institutions.