An African Perspective on the Establishment of a Fair and Transparent International Sovereign Debt Restructuring Mechanisms (SDRM): Various Options for African Countries

This paper seeks to contribute to the on-going debate on sovereign debt restructuring bringing in an African perspective and making recommendations for continued Civil Society advocacy for an International sovereign debt restructuring mechanism. The paper looks at the current environment and level of indebtedness of select countries in West and Central Africa, making a case for a restructuring of the debt of these countries in view of the challenges of post-COVID recovery. Section three explores the competing theories in SDR reforms from the perspective of both creditor and debtor nations and discusses the merits of market-based approaches versus the much contested Fund-led structural reforms approach. Section four discusses the position of tenants of an International Sovereign debt restructuring Mechanism, its merits and demerits and how it could better serve global mobilization to reduce inequalities and recover from COVID-19 debt spiraling. Key areas of focus for Civil Society organizations in their advocacy for equity and effectiveness in resolving debt crisis forms the conclusion.