The African Union (AU) has formally endorsed the creation of the African debt monitoring mechanisms(ADMM). This is a landmark step aimed at strengthening transparency, coordination, and accountability in how African countries manage their public debt.
The decision was reached at the Experts Session of the AU Specialised Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration. It was held in Johannesburg, South Africa, from September 27 to October 1.
Observers say the ADMM could prove transformational. “You can’t negotiate what you can’t measure,” one policy advocate noted. This adds that the mechanism is about Africa finally owning its debt narrative. With formal endorsement secured, the focus now shifts to ensuring full political buy-in and adequate funding. Smooth integration with the AU’s wider financial architecture is also crucial.
This endorsement came alongside two other major instruments: the Lomé Declaration on Debt and the Common African Position on Debt. These signal the AU’s determination to address Africa’s mounting debt challenges from a unified front.
African debt monitoring mechanisms
The initiative builds on a February 2022 decision of the AU Executive Council. It aims to explore the establishment of the continent’s first debt monitoring mechanism.
The ADMM will be housed within the AU’s and has been championed by Dr. Patrick Olomo and the ADMM Working Group Paul Sikazwe, Joshua Shem, and Catherine Mithia—with significant technical and institutional support from the Friedrich-Ebert-Stiftung (FES) AU Cooperation Office.
The development comes at a critical moment. African economies are grappling with debt distress and financing gaps in the midst of shifting global geo-economics. The ADMM is expected to provide standardized, aggregated debt data to member states. This will enable better debt sustainability analyses, improved negotiation leverage with creditors, and stronger accountability to citizens.
The debt initiative also aligns with broader AU efforts to build out a continental financial architecture. Ongoing projects include the establishment of the Africa Investment Bank, African Monetary Fund, and African Central Bank. The African Monetary Institute acts as a forerunner. So does the Pan-African Stock Exchange through the African Exchange Link Project. Parallel initiatives are advancing too, including the African Virtual Investment Platform (AVIP) and the African Financing Stability Mechanism (AFSM). Tools to curb Illicit Financial Flows (IFFs) are also part of the efforts.
