Beyond traditional models: a focus on alternate pathways for managing Africa’s sovereign debt

Abstract

ABSTRACT This paper explores the limitations of traditional sovereign debt management in Africa and introduces innovative strategies to address these challenges. It critically assesses current practices, identifying their inefficiencies and inadequacies in meeting the unique needs of African economies. The findings reveal a need for more flexible, context-specific approaches that consider the diverse economic landscapes of African nations. Additionally, it recommends a shift towards models that emphasise sustainable debt levels, local economic conditions and more inclusive stakeholder engagement. These strategies aim to provide African nations with more resilient and adaptable frameworks for managing sovereign debt, thereby fostering long-term economic stability and growth.