The Legal Foundations Of The African Public Debt

The document examines how African public debt is rooted in colonial constructs and enforced through contract law, often perpetuating economic dependency. It analyzes the legal architecture at national and international levels, the various debt instruments used, and the systemic failures in transparency and accountability that lead to debt crises. The paper advocates for constitutional reforms, independent debt management offices, and a multilateral sovereign debt restructuring mechanism to ensure sustainable development and protect human rights.

• Public debt in Africa is described as a colonial and capitalist construct, where independent nations inherited burdensome debts incurred by colonial powers to finance extraction and control, often qualifying as 'odious debt'.
• The legal basis of public debt is primarily contractual, but power imbalances between wealthy creditors (nations or international financial institutions) and borrowing African nations often lead to terms that favor the lender.
• National legal frameworks for debt management in Africa are often fragmented, with provisions spread across various laws and circulars rather than consolidated in a single Act, which undermines transparency and accountability.
• Regional economic communities have established public debt limits, but adherence varies; for example, the East African Community (EAC) limit is 50% of GDP, while Rwanda (66.7%) and Burundi (66.4%) have exceeded recommended thresholds.
• The G20 Common Framework for Debt Treatments is criticized as ineffective due to its narrow focus on the COVID-19 pandemic, lack of a systematic approach, and limited African representation (only South Africa is a member).
• Non-disclosure and lack of transparency in debt procurement have led to severe crises and litigation, exemplified by Mozambique's $2 billion hidden debt scandal and challenges regarding Kenya's Standard Gauge Railway (SGR) loan.
• Contingent liabilities, particularly from Public-Private Partnerships (PPPs), pose significant risks as they can transform into actual debt if specific triggers occur, often without sufficient parliamentary oversight.
• The paper recommends several domestic reforms, including establishing constitutional debt ceilings, requiring parliamentary approval for borrowing, and creating independent Debt Management Offices (DMOs).

APA

African Forum and Network on Debt and Development (n.d.). The Legal Foundations Of The African Public Debt. https://afrodad.org/sites/default/files/publications/Afrodad-The-legal-foundations-08112023-1.pdf

Chicago

African Forum and Network on Debt and Development. The Legal Foundations Of The African Public Debt. n.d. https://afrodad.org/sites/default/files/publications/Afrodad-The-legal-foundations-08112023-1.pdf.

Wikipedia

{{cite report |author=African Forum and Network on Debt and Development |title=The Legal Foundations Of The African Public Debt |url=https://afrodad.org/sites/default/files/publications/Afrodad-The-legal-foundations-08112023-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanforumandnetworkondebtanddevelopmentndlegal, author = {{African Forum and Network on Debt and Development}}, title = {{The Legal Foundations Of The African Public Debt}}, institution = {African Forum and Network on Debt and Development}, url = {https://afrodad.org/sites/default/files/publications/Afrodad-The-legal-foundations-08112023-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }