Several African nations have seen increasing financial distress during the past ten years due to a combination of high external borrowing, shocks to the world economy, rising interest rates, and shrinking fiscal flexibility. Countries like Zambia, Ethiopia, Ghana, and Chad reported unmanageable debt levels by the early 2020s, restricting their capacity to make investments in infrastructure, public services, and economic growth. In response, as a coordinated framework to assist low-income nations with debt restructuring, the international community unveiled the G20 Common Framework for Debt Treatments in 2020.
Under a unified restructuring process, the Common Framework was intended to unite established creditors, multilateral…