Back

AES2025: Fiscal Policy Challenges: Navigating Public Finance Management and Debt Sustainability

July 14, 2025
Related topics: 
Economy
Sectorial policies and structural transformation

African policymakers face complex fiscal policy challenges as they seek to balance limited resources and rising debt with pressing development goals. Persistent deficits, constrained revenue mobilization, and mounting debt service obligations restrict the fiscal space necessary for infrastructure, social services, and climate resilience. Shifting debt profiles—toward more commercial, higher-cost, and shorter-term borrowing—raise exposure to external shocks and refinancing risks.

Meanwhile, opportunities such as critical minerals create scope for expanding fiscal space, yet demand robust governance mechanisms to avoid resource mismanagement. Institutional reforms, strong fiscal rules, and enhanced transparency are vital to improving the credibility and flexibility of public financial management systems. In addition, current debt resolution frameworks and sustainability analyses must evolve to reflect Africa’s development and climate realities. Innovative financing instruments and prudent expenditure choices offer potential pathways, but also introduce new risks and implementation dilemmas.

  • How can countries strengthen revenue mobilization and leverage innovative financing without hampering growth or equity?
  • What reforms can boost expenditure efficiency and protect essential services during fiscal consolidation?
  • How should institutional frameworks and governance mechanisms evolve to enhance fiscal credibility and manage natural resources?
  • What approaches best address debt sustainability and resolution, considering Africa’s unique risks and long-term needs?

 

French translation

RELATED CONTENT

  • Prospects for Deeper Economic Integration under AfCFTA
    August 22, 2025
    This episode explores the opportunities and challenges of achieving deeper economic integration under the African Continental Free Trade Area (AfCFTA). We discuss the potential for boosting intra-African trade, industrialization, and investment flows. The conversation highlights the nee...
  • Annual Report on the African Economy 2025
    Authors
    Edited by
    Larabi Jaïdi
    July 14, 2025
    Available soon on livremoi. The 2025 edition of the African Economic Report continues in the spirit of previous versions. It presents a broad overview of the continent’s economic evolution and offers insights into Africa’s relationship with the rest of the world. In other words, it explores how Africa navigates the effects of global fragmentation within its regional spaces while pursuing its ambition of continental integration. ...
  • Download PDF
    Asian Economic Integration Led by Trade Liberalization: A Lesson for Other Regions
    Authors
    Otaviano Canuto
    Hung Q. Tran
    July 9, 2025
    Developing countries have few options to deal with the ongoing tariff war amid unpredictable shifts in global supply chains. However, regional economic integration offers a strategic path of development in these uncertain and challenging times. Helped by geographical proximity and cultural familiarity, countries in a region can benefit greatly from promoting trade with one another, reaping the benefits of comparative advantages and economies of scale—if they are able to establish a ...
  • Download PDF
    La crise bancaire qui couve en zone UEMOA : l’argent coûte cher et se raréfie
    Authors
    Seydina Alioune NDIAYE
    July 8, 2025
    La stabilité apparente des taux directeurs de la BCEAO (Banque centrale des États de l'Afrique de l'Ouest) masque une réalité bien plus préoccupante : un resserrement monétaire non déclaré dans la zone UEMOA (Union économique et monétaire ouest-africaine) et une rareté accrue de la liquidité qui frappe tout le système. Nous proposons une analyse en profondeur des mécanismes de cette crise bancaire latente, ses manifestations concrètes sur le tissu économique et ses implications pour ...
  • Download PDF
    Le verdissement des politiques monétaires
    Authors
    Christian de Boissieu
    July 2, 2025
    Dans un contexte devenu plus incertain et plus compliqué à la suite des décisions de la nouvelle administration américaine, les impératifs de la lutte contre le changement climatique et de la transition énergétique et écologique demeurent.Les banques centrales peuvent et doivent apporter leur contribution à cette transition, en « verdissant », dans une proportion à définir, la politique monétaire qu’elles mènent. Concrètement, cela veut dire compléter la palette des object ...
  • Empowering women through agricultural cooperatives: a multilevel analysis in Morocco’s Marrakech-Safi region
    Authors
    Aomar Ibourk
    Sana Hninou
    June 25, 2025
    This Paper was originally published on springer.com This study investigates the impact of female agricultural cooperatives on women’s empowerment in Morocco, with a focus on the rural Marrakech-Safi region. The research evaluates the effectiveness of these cooperatives in enhancing women’s empowerment through economic opportunities, participatory governance, and leadership roles. The Global Empowerment Index (GEI) was adopted to measure empowerment across five key dimensions: p ...