African Finance Ministers and Central Bank Governors are pushing for more timely and robust debt sustainability assessments as rising global shocks continue to strain public finances across low-income economies.
The call was made by the African Consultative Group following a high-level meeting with Kristalina Georgieva, Managing Director of the International Monetary Fund, during the 2026 Spring Meetings of the IMF and World Bank Group in Washington.
The group emphasised that intensifying conflict-related shocks and macroeconomic disruptions are worsening debt vulnerabilities, making it critical for countries to adopt more transparent, accurate, and forward-looking debt assessments.
According to the ministers and governors, the ongoing review of the Low-Income Country Debt Sustainability Framework (LIC-DSF) presents an opportunity to strengthen the joint IMF-World Bank toolkit for evaluating debt risks and guiding policy responses.
They noted that in the current global climate, characterised by geopolitical tensions and economic uncertainty, the need for credible debt sustainability assessments has become more urgent.
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Rising Debt Risks Across Africa
Recent data from the IMF indicate that nearly 60 per cent of low-income countries are either at high risk of debt distress or already in distress, highlighting the growing fiscal challenges facing developing economies.
Complementary data from the United Nations’ World Economic Situation and Prospects 2025 report show that Africa’s public debt-to-GDP ratio has risen sharply to 67.5 per cent, up from less than 40 per cent a decade ago.
The African Consultative Group warned that without improved analytical frameworks and policy coordination, debt vulnerabilities could further undermine economic stability and growth prospects across the continent.
Push for Improved Methodology and Transparency
The officials called for refinements to the LIC-DSF methodology, including improvements to how debt-carrying capacity is measured, as well as enhanced transparency, comparability, and predictive accuracy in debt assessments.
They also stressed the need to clarify debt coverage and better account for liabilities linked to State-Owned Enterprises (SOEs), which often pose hidden fiscal risks.
Enhanced debt sustainability analysis, they said, would enable policymakers to better identify vulnerabilities, design appropriate fiscal measures, and make informed financing decisions.
Beyond Diagnostics: Need for Coordinated Action
While improving assessment tools is critical, the group underscored that addressing Africa’s debt challenges requires coordinated action beyond diagnostics.
They called for stronger collaboration between governments, multilateral institutions, and private creditors to ensure that debt restructuring processes are timely, transparent, and equitable.
The ministers and central bank governors also highlighted the importance of strengthening domestic resource mobilisation as a long-term solution to debt pressures. This includes broadening tax bases, improving revenue collection systems, and tackling illicit financial flows to reduce dependence on external borrowing.
Balancing Debt Sustainability With Development Needs
The meeting further acknowledged ongoing efforts by the IMF and World Bank to integrate climate and social spending considerations into debt sustainability frameworks.
This approach is expected to help countries strike a balance between maintaining fiscal discipline and investing in critical sectors such as infrastructure, climate resilience, and social protection.
The IMF reaffirmed its commitment to supporting member countries with technical assistance and policy advice, while the World Bank pledged continued financing for infrastructure and development programmes that underpin long-term economic stability.
The African Consultative Group concluded that reforms to the LIC-DSF, combined with improved transparency, creditor coordination, and domestic policy adjustments, could help restore investor confidence and lay the groundwork for sustainable economic growth across the continent.
