Guidelines for managing the debt of State-owned enterprises

Abstract

These guidelines address the management of State-owned enterprise (SOE) debt in Africa, emphasizing fiscal risks and governance challenges. SOEs play a vital economic role but often face inefficiencies, contingent liabilities, and unsustainable debt burdens, threatening fiscal stability. Key recommendations include strengthening governance frameworks, enhancing risk and financial management, improving transparency, and considering privatization. The guidelines stress the need for coordinated oversight, capacity-building, and adherence to international best practices to mitigate risks and ensure SOEs contribute sustainably to national development. Developed through a 2024 workshop with African policymakers, the report highlights case studies and advocates for reforms to balance SOEs’ strategic mandates with financial viability.