This technical note examines how blended finance, thematic instruments and national development banks can strengthen debt sustainability and support productive transformation in Africa. Drawing on a debt dynamics framework and country examples, it argues that financing should be assessed by its contribution to lower borrowing costs, longer maturities, reduced currency and refinancing risks, and productivity growth, alongside capital mobilization. It explores the trade-offs in blended finance design, the opportunities and safeguards associated with thematic bonds and debt-for-nature swaps, and the capacity of national development banks to channel long-term investment. The note emphasizes targeted concessionality, transparent fiscal risk management, independent verification and stronger domestic capital markets. It concludes that these mechanisms are most effective when tailored to institutional capacity and integrated into credible debt management and structural reform strategies.
To read the full document visit Blended Finance, Thematic Instruments and Development Banks
This technical note assesses debt transparency across 48 African countries using the Debt Transparency Monitor’s 14-indicator scorecard, which measures the availability and timeliness of public debt disclosures. Simple and GDP-weighted results indicate moderate overall transparency, with stronger reporting of headline debt and financing indicators but persistent gaps in public sector balance sheets, debt structure and fiscal risks. Regional comparisons and year-on-year changes reveal uneven performance and limited progress in institutional reporting. The analysis also identifies a positive association between debt transparency and sovereign credit ratings, with gains emerging gradually. The note recommends comprehensive public sector debt reporting, disclosure of state-owned enterprise liabilities and guarantees, and stronger maturity, creditor and fiscal risk reporting to improve institutional credibility and support more informed sovereign risk assessments.
To read the full document visit The Debt Transparency Monitor (DTM)
This technical note examines the conditions under which local currency bond markets can provide a sustainable alternative to external public borrowing in Africa. Drawing on Malawi’s experience and comparisons with Ghana, Nigeria and Kenya, it explores their potential to reduce currency mismatches, strengthen monetary policy transmission and support financial sector development. It also examines how weak fiscal discipline, exchange rate distortions and narrow investor bases can generate inflationary pressures, financial repression and crowding out of private credit. The note argues that sustainable market development requires credible fiscal and monetary frameworks, transparent debt issuance, diversified investor participation and market-aligned exchange rates. It concludes that local currency bond markets can strengthen financing resilience when supported by coherent macroeconomic policies and institutional reforms.
To read the full document visit Local Currency Bond Markets in Africa
This technical note examines how African governments can strengthen sovereign creditworthiness through reforms addressing the institutional, economic, external, fiscal and monetary pillars of credit rating assessments. Drawing on continental diagnostics, it identifies persistent constraints, including debt vulnerabilities, high borrowing costs, shallow domestic markets, incomplete debt disclosure and limited economic diversification. It outlines priority reforms to strengthen fiscal credibility, manage refinancing risks and contingent liabilities, improve debt transparency, and direct borrowing towards productive investment. The note proposes reform sequencing tailored to countries’ binding constraints and a monitoring dashboard for tracking progress over 12–24 months. It argues that durable improvements in creditworthiness depend on credible implementation, stronger institutions and greater macroeconomic resilience, supporting more stable market access and lower financing costs.
To read the full document visit Strengthening Sovereign Credit Ratings