Development Financing

This study develops a new framework for understanding the premium by introducing the concept of an “institutionalized” African risk premium. In doing so, the study identifies three distinct forms of the African risk premium: (a) the perceived African risk premium; (b) the real African risk premium; and (c) the institutionalized African risk premium.

Using the dependency theory and a political economy framework to analyze the FfD4 Outcome Document, this paper provides a brief critical review of the ineffectiveness of debt restructuring initiatives over the past decade (2015–2025). The paper shows how dire the debt crisis has been and continues to be, and how Seville was a missed opportunity to change course. Importantly, it critically analyzes what Seville managed “to do and did not do” on debt and international financial architecture provisions in the Outcome Document and concludes by providing recommendations to strengthen them in a post-Seville.

Our Samantha Kanoyangwa represented the African Sovereign Debt Justice Network at the FfD4 3rd Preparatory Committee Session.

My comments focus on Chapter II on Domestic and Financial Private Business and Finance. I will focus on the proposals relating to domestic financial sector, enabling environments and access to financing in paragraphs 31, 33 and 34 of the Zero Draft. My overall comment is that these proposals are a wish list for foreign investors not proven avenues of raising financings.