MEFMI Delivers e-learning Course on Debt Sustainability Analysis

MEFMI delivered its first e-learning course on Debt Sustainability Analysis (DSA) from 17 September to 20 October 2020. The course was offered as part of the Institute’s efforts to impart knowledge and skills to officials in the region on the use of the revised IMF/World Bank Debt Sustainability Framework for Low-Income Countries (LIC DSF).

The course discussed the key inputs and data preparation process for variables required to conduct a DSA. Also discussed were the mechanics and computation of key metrics used to measure debt carrying capacity, the calibration, computation and application of the stress tests in the LIC DSF as well as the interpretation of the results of the DSA analysis.

Participants had live discussions through Zoom on the DSF template, which gave them an opportunity to explore the ‘Inputs’ and ‘Outputs’ sheets of the template. The course enhanced participants’ capacity to apply the LIC DSF to assess the sustainability of their countries’ public debt.  MEFMI expects the participants to use the knowledge and skills gained from the course to conduct DSAs in their countries as a basis for advising policymakers on responsible borrowing that minimises debt vulnerabilities.

This regional e-Learning course will be followed by in-country interventions to train and assist officials from MEFMI member countries to conduct DSAs. This will help inform coordinated policies and borrowing decisions to respond adequately to global shocks such as the COVID-19 pandemic.

A total of 35 officials participated in the course. These were drawn from relevant departments in central banks and ministries of Finance, Planning and Economic Development from eight (8) MEFMI member countries, namely Botswana, Kenya, Mozambique, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe. The course mentors were Mr. Yasin Mayanja, a MEFMI Graduate Fellow from Uganda and Ms. Cristina Dimande of the MEFMI Secretariat.

Prepared by Cristina Dimande