The webinar entitled “Exploring the link between fiscal policies and debt management” is the second in a series dedicated to African debt management, organized by the African Development Bank (AfDB), with the support of the government from Japan. Experts and government officials discussed strategies for mobilizing internal resources.

Dealing with the increase in the debt of African countries and enabling the continent to recover better after the Covid - 19 pandemic. This is what government experts, institutional specialists and societal actors are working on. civil. The webinar aimed to explore suitable solutions for Africa following the Covid-19 pandemic. The AfDB estimates that the continent's average debt-to-GDP ratio is expected to increase substantially to 71% in 2020, from 61% in 2019 and 48% in 2015. The number of African countries at high risk of debt distress has almost doubled in ten years ( 11 in 2010 and 20 in 2020). Faced with this situation, the AfDB believes that it is essential to tackle this trend and bring countries on the path to more sustainable debt.

Governments could also increase the tax base by raising taxes in certain sectors: land, telecoms, banks, insurance, real estate, mining, the blue economy and especially in the new digital sector. It emerged from the discussions that Africa has much greater potential and capacity to tax, relatively larger domestic markets, and better borrowing options in external markets. Although still weak, governance has also improved.