Policy makers in most Sub-Saharan African (SSA) and other emerging markets continue to operate in a very challenging environment. Poverty remains wide spread, with about 48 percent of the population in SSA living on less than US$1.25 per day while the health and education indicators remain very poor and much lower compared to other regions. In addition, the infrastructure needs of the continent are vast and a lot of resources are required per year for public and private investment in order to bridge the infrastructure gap. In this regard, most governments have taken recourse to increased borrowing to meet the resource shortfall, leading to rapid accumulation of public sector debt in recent years. This has led to fresh concerns about public debt sustainability going forward.

In response, MEFMI in collaboration with the World Bank (WB) and International Monetary Fund (IMF) organized regional workshop on Debt Sustainability Analysis from 8 to 17 February 2016 at A’Zambezi River Lodge in Victoria Falls, Zimbabwe. The workshop aimed at imparting knowledge and skills on the use of Debt Sustainability Analysis tools, including the IMF/World Bank Debt Sustainability Framework (DSF) for Low Countries (LICs) and Market Access Countries (MACs).The Permanent Secretary (PS) in the Ministry of Finance and Economic Planning in Zimbabwe, Mr. Willard Manungo, who officially opened the workshop, commended MEFMI, WB and IMF for organizing a workshop on debt sustainability analysis. In his remarks, the PS said that the problem of debt sustainability is exacerbated by the fact that the financing landscape has changed significantly, particularly with the emergence of new creditors which are providing loans on harder terms compared to the traditional lenders. He noted that developing countries, including those in the MEFMI region, are increasingly tapping on the international capital market through issuance of international sovereign bonds, which attract relatively higher interest rates and have shorter maturities. He added that the debt related vulnerabilities are exacerbated by the increase in domestic debt which is also very costly. In this regard, Mr. Manungo urged governments in the MEFMI region to design appropriate debt management policies and strategies in order to ensure long term debt sustainability. He also urged governments to incorporate debt sustainability analyses into economic management processes by conducting DSAs regularly in order to detect any debt distress signals. Participants in the workshop were drawn from relevant departments in the Ministries of Finance and Economic Development and Central Banks of Botswana, Burundi, Kenya, Lesotho, Mozambique, Swaziland, Uganda, Zambia and Zimbabwe. The training targeted officials responsible for debt and macroeconomic forecasting. A total of 27 participants attended the training, of which 12 were female, representing 44 percent of the total. The workshop was facilitated by Tobias Haque, Mick Riordan and Greg Smith of the World Bank; Heiko Hesse and Joyce Saito of the IMF; Leslie  Mkandawire (MEFMI Consultant from Malawi) and Stanislas Nkhata of MEFMI Secretariat.

The training covered the following topics:

• Introduction to Debt Sustainability and the IMF/WB Debt Sustainability Framework (DSF) for Low Income Countries (LICs) and Market Access Countries (MACs); 

Linkages between macroeconomic performance and debt sustainability;

Linkages between Debt Sustainability and IMF Debt Limit Policy and World Bank Non-Concessional Borrowing Policy;

Public and External Debt Dynamics;

The DSF Tool for LICs and MACs: General Structure and Inputs – Hands-On 

Exploration of the Templates;

Stress tests in debt sustainability analysis;

External and public debt thresholds, ratings and benchmarks;

Interpretation of the DSA results, and Case Studies on DSA in LICs and MACs.

The main output of the workshop was that it enhanced the knowledge and skills of  participants in the use of the IMF/World Bank analytical tools for debt sustainability in low 

income and market access countries.

World Bank, IMF and MEFMI train Officials on Debt Sustainability Analysis   Policy makers in most Sub-Saharan African (SSA) and other emerging markets continue to    operate in a very challenging environment. Poverty remains wide spread, with about 48    percent of the population in SSA living on less than US$1.25 per day while the health and    education indicators remain very poor and much lower compared to other regions. In    addition, the infrastructure needs of the continent are vast and a lot of resources are required    per year for public and private investment in order to bridge the infrastructure gap. In this    regard, most governments have taken recourse to increased borrowing to meet the resource    shortfall, leading to rapid accumulation of public sector debt in recent years. This has led to    fresh concerns about public debt sustainability going forward.   In response, MEFMI in collaboration with the World Bank (WB) and International Monetary    Fund (IMF) organized regional workshop on Debt Sustainability Analysis from 8 to 17    February 2016 at A’Zambezi River Lodge in Victoria Falls, Zimbabwe. The workshop aimed    at imparting knowledge and skills on the use of Debt Sustainability Analysis tools, including    the IMF/World Bank Debt Sustainability Framework (DSF) for Low Countries (LICs) and    Market Access Countries (MACs).   The Permanent Secretary (PS) in the Ministry of Finance and Economic Planning in    Zimbabwe, Mr. Willard Manungo, who officially opened the workshop, commended    MEFMI, WB and IMF for organizing a workshop on debt sustainability analysis. In his    remarks, the PS said that the problem of debt sustainability is exacerbated by the fact that the    financing landscape has changed significantly, particularly with the emergence of new    creditors which are providing loans on harder terms compared to the traditional lenders. He    noted that developing countries, including those in the MEFMI region, are increasingly    tapping on the international capital market through issuance of international sovereign bonds,    which attract relatively higher interest rates and have shorter maturities. He added that the    debt related vulnerabilities are exacerbated by the increase in domestic debt which is also    very costly. In this regard, Mr. Manungo urged governments in the MEFMI region to design    appropriate debt management policies and strategies in order to ensure long term debt    sustainability. He also urged governments to incorporate debt sustainability analyses into    economic management processes by conducting DSAs regularly in order to detect any debt    distress signals.    Participants in the workshop were drawn from relevant departments in the Ministries of    Finance and Economic Development and Central Banks of Botswana, Burundi, Kenya,    Lesotho, Mozambique, Swaziland, Uganda, Zambia and Zimbabwe. The training targeted    officials responsible for debt and macroeconomic forecasting. A total of 27 participants    attended the training, of which 12 were female, representing 44 percent of the total.    The workshop was facilitated by Tobias Haque, Mick Riordan and Greg Smith of the World    Bank; Heiko Hesse and Joyce Saito of the IMF; Leslie  Mkandawire (MEFMI Consultant    from Malawi) and Stanislas Nkhata of MEFMI Secretariat.   The training covered the following topics:    Introduction to Debt Sustainability and the IMF/WB Debt Sustainability Framework    (DSF) for Low Income Countries (LICs) and Market Access Countries (MACs);     Linkages between macroeconomic performance and debt sustainability;    Linkages between Debt Sustainability and IMF Debt Limit Policy and World Bank    Non-Concessional Borrowing Policy;    Public and External Debt Dynamics;    The DSF Tool for LICs and MACs: General Structure and Inputs – Hands-On    Exploration of the Templates;    Stress tests in debt sustainability analysis;    External and public debt thresholds, ratings and benchmarks;    Interpretation of the DSA results, and    Case Studies on DSA in LICs and MACs.   The main output of the workshop was that it enhanced the knowledge and skills of    participants in the use of the IMF/World Bank analytical tools for debt sustainability in low    income and market access countries.