Countries In MEFMI Region Encouraged To Be Prudent When Borrowing

Recent debt sustainability analysis studies indicate that most countries in the MEFMI region have low risk of debt distress.  However there are indications that if not effectively managed, some countries in the MEFMI region that received debt relief will slowly slip back into debt largely because of contingent liabilities. This was said by the MEFMI Executive Director, Dr Caleb Fundanga at the seminar for Parliamentarians’ on Public Debt Management.  The seminar is being attended by some Parliamentarians from Kenya, Uganda, Tanzania and some officials from the Ministry of Finance and National Planning, Sudan.

The seminar is the first that MEFMI is offering targeting members of Parliamentarians as this arm of the legislature has a distinct role in debt management. Dr Enos Bukuku the Deputy Secretary General of the East African Community opened the seminar. In his opening remarks, he stated that seminar is very relevant and timely for the East African Community (EAC) region because member states are currently implementing substantial development projects, most of them financed through borrowing. Most of the infrastructure such as roads, railways, airports, seaport expansions and power generation continue to be largely financed through borrowing, and legislators need to be enlightened on whether such borrowing is appropriate and if there are alternatives in terms of borrowing.

Please click here to read the speech by Dr Bukuku and the speech by Dr Caleb Fundanga