A new joint report by Development Reimagined, the African Center for Economic Transformation (ACET), and AfriCatalyst, explores how African countries can enhance their agency in the global financial system through better borrower coordination.
For decades, global debt and finance structures have been designed in favor of creditors, leaving borrowing countries, and especially those in Africa, at a disadvantage. This report highlights historical and ongoing efforts of African borrowers to collaborate in securing fairer debt terms, accessing affordable financing, and advocating for systemic changes in the global financial architecture. It identifies and examines 32 borrower coordination initiatives, both past and present, categorizing them into formal partnerships, advocacy platforms, and capacity-building initiatives.
Key findings include:
● While creditors have long coordinated through mechanisms like the Paris Club, African borrowers have lacked similar structured platforms to negotiate collectively.
● Current borrower coordination efforts are fragmented, with overlapping initiatives that need better alignment to maximize impact.
● Strengthening borrower coordination could lead to more favorable debt restructuring terms, increased access to concessional finance, and a stronger African voice in global financial decision-making.
● A structured Borrower Coordination Community of Practice could enhance knowledge-sharing and negotiation capacity among African finance ministries and debt management offices.
Recommendations
The report urges African governments, financial institutions, and development partners to:
● Expand capacity-building programs for African finance officials in debt negotiation and management.
● Create safe spaces for borrowers to share insights and strategies away from creditor influence.
● Align and merge overlapping borrower coordination initiatives to enhance efficiency.
● Identify champions and advocates, such as influential policymakers and economists to drive borrower coordination efforts.
This research is a call to action for African policymakers and institutions to take the lead in shaping the continent’s financial future as stronger borrower coordination is not just an option but a necessity for fairer, more sustainable global finance.
To access the full report, click here
