- February 16, 2024
- Posted by: admin
- Categories: Current News, debt management
As part of the ongoing efforts to build capacity in member countries, the Trade and Development Bank (TDB), the Africa Legal Support Facility, (ALSF), MEFMI and The Currency Exchange Fund, (TCX) jointly conducted a Seminar on Loan Negotiation and FX Risk Management from 17 to 21 July 2023 in Dar es Salaam, Tanzania.
The Seminar aimed to strengthen the capacity of the debt management officials and legal personnel involved in loan negotiation with requisite skills for the evaluation, negotiation, interpretation and restructuring of sovereign loans. In addition, the Seminar also raised awareness on risk mitigation options specifically, on currency risks and the available hedging solutions. It also expounded on how long-term financing in domestic currency is key to debt resilience and capital market development.
The Seminar drew the participation of 44 participants, composed of debt managers and legal officials. Of these participants, 24 were from the 12 MEFMI member countries namely Botswana, Burundi, Eswatini, Kenya, Malawi, Mozambique, Namibia, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe. There was also the participation of Comoros, Djibouti, the Democratic Republic of Congo, Egypt, Ethiopia, Mauritius, Senegal, Seychelles and South Sudan, who were invited by the MEFMI partners. In terms of gender disaggregation, 17 of the Seminar participants were female.
It is envisaged that countries will utilise the knowledge acquired from the Seminar to negotiate better terms for their respective governments, especially on emerging financing options. In addition, several countries are currently faced with elevated debt vulnerabilities, necessitating debt restructuring. Thus, the Seminar is seen as having been timely in raising awareness and providing knowledge on available restructuring mechanisms which is critical in the ongoing country discussions.