MEFMI Debt Management Course Expands Pool of Officials Trained in Public Debt Management

MEFMI conducted the first regional workshop on Foundations of Debt Management from 30^th June to 11^th July 2014 at Crossroads Hotel in Lilongwe, Malawi.  This was one of the new courses introduced after the review of the Debt Programme curriculum towards the end of Phase III.

The main objective of the workshop was to nurture and equip officials from member countries with requisite skills to enhance their effectiveness in managing public sector debt. The course also aimed at expanding the skills base in debt offices through hands-on exposure to analytical tools used in public debt management, targeted at new entrants, junior and middle level debt officers.

The workshop was attended by new entrants, junior and middle ranking officials in Debt Management Offices of Ministries of Finance and Central Banks. The course also drew participation from some senior officials who wanted to refresh their understanding of debt management principles and practices. A total of 41 participants from 12 MEFMI member countries participated in the workshop. The participants included 19 female, representing 46% of the total.

The workshop was officially opened by Mr. Ben Botolo, Permanent Secretary in the Ministry of Finance and Economic Planning, Malawi. The Permanent Secretary was accompanied by the Director and Deputy Director in the Debt and Aid Management Division, Messrs Peter Simbani and Lukes Kalilombe. In his remarks, Mr. Botolo noted that there is currently a wave of fresh and aggressive borrowing by most developing countries, including those in the MEFMI region, from traditional as well as emerging creditors, while others are borrowing directly from the international and domestic bond markets. He pointed out that borrowing from non-traditional sources exposes countries to a different set of cost and risks compared to the previous years when debt portfolios were mainly dominated by concessional loans.

This brings to the fore the need for continued human capacity building to match the evolving borrowing environment. In this regard, Mr. Botolo commended MEFMI for recognizing the need to enhance the skills in debt offices of the region so that they could cope with dynamics in public debt markets. Such skills will allow debt officers to manage public debt portfolios within the framework of fiscal prudence and macroeconomic stability. This is the only way for ensuring that economies remain resilient in the face of any external shocks such as those that arose from the Eurozone debt crisis.  

The workshop was facilitated by two (2) regional resource persons and two (2) MEFMI staff.  These were Messrs Jacob Mkandawire of Bank of Zambia, Carilus Odumbe of the Central Bank of Kenya and Raphael Otieno and Tiviniton Makuve, both of MEFMI.

Participants were equipped with requisite skills to enhance their effectiveness and efficiency in managing public sector debt. The course also contributed in expanding the pool of officials that are trained, knowledgeable and have practical exposure to analytical tools used in public debt management. In addition, participants shared experiences and had a platform to openly discuss emerging issues in public debt management. It is expected that they will apply the knowledge, skills and valuable experiences acquired to improve efficiency in managing public debt in their respective offices and institutions.

Participants recommended the introduction of an intermediate and advanced course in debt management for the same group to build on the gains achieved by the foundational course.  They also recommended the creation of an online forum where debt practitioners in the region can share experiences and discuss emerging issues in debt management. These recommendations were welcome as they are in line with MEFMI’s strategic goals.