The West Africa Institute for Financial and Economic Management (WAIFEM) has launched a five-day regional training on Debt Sustainability Analysis for Low-Income Countries (DSF-LIC) in Liberia.
The training, held in collaboration with the World Bank and the International Monetary Fund (IMF), commenced on Monday, May 13 to 17, 2024. It aims to enhance the capacity of professionals in debt management and economic policy across the West African region.
Musa Dukuly, Deputy Governor for Economic Policy at the Central Bank of Liberia, delivered the opening remarks on behalf of Aloysius J. Tarlue, Jr., Executive Governor of the Central Bank of Liberia.
Dukuly welcomed participants from various countries, emphasizing Liberia’s commitment to hosting such crucial capacity-building initiatives.
He remarked, “If this is your first time here, feel at home. Liberia is the only country in Africa where we don’t discriminate significantly, a country that provides a footprint for Africans who don’t have a home to come and settle.”
Dukuly expressed gratitude to WAIFEM for its role in enhancing the capacity of professionals across institutions, including central banks and the private sector.
He underscored the importance of debt sustainability and management, particularly in the face of successive shocks and limited revenue generation capacity.
“Debt sustainability is important, but what is more important is debt management. How can we manage debt in our region so that it removes the structural bottleneck for our country to grow and create conditions such that we have the requisite growth, become more inclusive, and reduce poverty?” he stated.
Reflecting on the theme of the training, Dukuly emphasized the critical importance of debt sustainability for low-income countries, especially in the wake of global challenges such as the COVID-19 pandemic and previous shocks like the Ebola outbreak.
He highlighted the need for effective debt management policies to prevent economic instability and ensure sustainable growth.
Furthermore, Dukuly stressed the importance of not only assessing debt sustainability, but also focusing on debt management strategies that facilitate economic growth and poverty reduction.
In his concluding remarks, Dukuly officially declared the training workshop open, signaling the beginning of five days of intensive learning and knowledge exchange.
Wissan Harake, Senior Economist at the World Bank, expressed optimism about the training’s potential impact, stating, “I hope this training will be beneficial to you. It’s my first time in Liberia, so I’ve been looking forward to it for a while now.”
Jean-Claude Nachega, Senior Economist at the IMF, echoed similar sentiments, highlighting the importance of interactive learning and knowledge exchange: “I think we will interact together and try to learn together. This will also be my first time teaching this course.”
Baba Yusuf Musa, Director General of WAIFEM, emphasized the significance of enhancing capacity in debt management and economic resilience across low-income countries.
He commended the collaboration between WAIFEM, the World Bank, and the IMF in organizing the training, and reiterated WAIFEM’s commitment to fostering excellence in economic management and policymaking in the region.
“As you are all aware, low-income countries (LICs), especially those eligible for the International Development Association (IDA) and Poverty Reduction and Growth Facility (PRGF), are mandated to conduct an annual Debt Sustainability Analysis (DSA) using the World Bank/IMF Debt Sustainability Framework (DSF-LIC),” said Musa.
According to him, this framework guides countries and donors in financing LICs’ development needs, while preventing unsustainable debt accumulation. It adopts a forward-looking approach, focusing on vulnerabilities to future debt distress. While our member countries have some capacity to conduct a DSA, there’s a pressing need to enhance both the methodology and the LIC DSF tool/template developed by the World Bank/IMF.
He said, “WAIFEM remains committed to fostering excellence in economic management and policymaking as we look to the future. We stand ready to continue our journey of empowerment, equipping public officials with the knowledge, skills, and expertise needed to navigate the complexities of our ever-changing global economic landscape.”
Musa disclosed that throughout the training, participants will delve into the following key areas: introduction to the DSF-LIC, understanding its operational application and implications for low-income countries, exploring macroeconomic linkages and debt dynamics, and understanding financing assumptions and realism tools, including debt dynamics and fiscal adjustment drivers, among others.
He expressed the hope that by the end of the training, participants will be proficient in utilizing the DSF-LIC toolkit for DSA, comprehending its underlying concepts and methodology, and adeptly navigating data requirements, macro-fiscal projections, and financial debt indicators.
“Under the guidance of the WAIFEM Board of Governors, the Institute has continually evolved to meet the changing needs of our member nations,” Musa said. “In recent years, we have expanded our portfolio to include cutting-edge and specialized training in governance, regional integration, financial technology, cybersecurity, climate change, and youth unemployment.”
WAIFEM Director General added that strengthening this capacity can positively impact a country’s debt management assessments and foster a more robust dialogue between country authorities and WB/IMF country teams.
Meanwhile, the week-long training drew participants from central banks, ministries of finance, revenue authorities, and other key institutions from across the West African region, including Liberia, Ghana, Sierra Leone, and The Gambia.
