IMF Podcasts

Amadou Sy on Why Africa Is Keeping Its Debt Closer to Home

In this episode, IMF Assistant Director Amadou Sy explains the growing shift in African governments from external, often dollar‑denominated debt to domestic, local‑currency debt. He outlines the benefits of reduced currency risk and greater fiscal flexibility, while noting higher borrowing costs, shorter maturities, and the need for robust domestic capital markets. Sy emphasizes that developing a stable macroeconomic environment, transparent debt management, and a diversified investor base—including pension funds, insurers, and foreign portfolio investors—is essential for sustainable domestic debt markets and private‑sector financing.