Signing of a Letter of Understanding (LoU) with the IMF Institute for Capacity Development (ICD): Contributing to the improvement of Africa’s debt management capacity
2023.12.11
On November 17, the Japan International Cooperation Agency (JICA) and the International Monetary Fund (IMF) Institute for Capacity Development (ICD) signed a Letter of Understanding (LoU) to implement their first cooperation project aimed at enhancing the debt management capacity of African countries.
Through this project, the Africa Training Institute (ATI)—working under the jurisdiction of the IMF-ICD—will offer training courses focused on public financial management and debt sustainability analysis, with the aim of enabling participants in each country to acquire the necessary knowledge for debt management and to apply it in practice, such as how to pursue debt strategy development.
Signing Ceremony
Some African countries have defaulted due to surging external debt. The IMF's ICD provides training to staff from finance ministries, central bankers, and other officials from around the world to strengthen their practical skills in debt restructuring as well as the evaluation and analysis of fiscal stability and debt sustainability. This cooperation is expected to contribute to the improvement of debt management in African countries.
Japan’s commitment to cooperation in Africa’s financial management, specifically in the area of public expenditure and financial accountability, was also announced by the Japanese government at the Eighth Tokyo International Conference on Africa Development (TICAD8). The government pledged to “provide capacity development in a total of 30 countries to achieve fair and transparent finance,” and to “implement technical cooperation for the capacity building of debtor countries,” including through financial contributions to IMF and World Bank trust funds, etc. This cooperative project fulfills such pledges.
Taking this LoU with the IMF-ICD as a starting point, JICA will further strengthen its partnership with the institution, as well as work with various other international organizations to improve Africa's debt management capacity and fiscal stability.
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