Sees Growth Opportunity with AU
EXCLUSIVE
Asheville, N.C.—Canada will support G20 efforts to improve sovereign-debt transparency and back World Bank’s initiatives aimed at easing financing pressures on African countries, Canadian Finance Minister Francios-Philippe Champagne said in an exclusive interview with the Africa Bazaar magazine at the G20 Finance Ministers and Central Bank Governors’ Ministerial in Asheville, North Carolina.
“Transparency will be an important aspect of that,” Champagne told Africa Bazaar, pointing to the growing international focus on debt disclosure as well as the sovereign debt discussion at the G20 Ministerial meetings. “There is a whole discussion about debt transparency, and certainly we have been very supportive of that initiative.”
The comments come as African governments face higher borrowing costs, heavy debt burdens and limited fiscal room to fund infrastructure and social spending. Debt transparency, particularly around the scale and terms of bilateral and private-sector lending, has become a central issue for African policymakers seeking to make restructurings faster and more predictable.
The current U.S. G20 presidency has made Sovereign Debt one of the main themes on its agenda at the Finance Ministers and Central Bank Governors meetings, with inputs from the African Union, the World Bank and the International Monetary Fund as well as other credit partners including France and United Kingdom.
In his opening remarks during a session on Addressing Sovereign Debt in Emerging and Developing Economies, U.S. Treasury Secretary Scott Besssent noted that “several low and middle income countries remain vulnerable to debt distress,” with some ultimately requiring restructuring. He underscored that these “debt crises can cut such countries off from market financing, stunt growth prospects, and lead to a negative spiral of falling economic activity that reduces ability to pay.”
The G20 Sovereign Debt agenda focuses on two primary goals: accelerating debt restructurings for emerging markets, and developing economies that need them, and increasing debt, data, accuracy, and transparency. On speed, less time consumed by uncertainty and more time devoted to investment, growth, and market access.
Similarly, on transparency, borrowers and creditors must work from a common set of fact, which includes better data support better policy, reduce surprises, and strengthen global financial stability, Bessent said.
Bessent noted that this year, tangible progress has been made toward that goals of improving debt restructuring, timelines, and debt transparency.
Canada has been “supportive of the initiatives that have been presented also by the World Bank,” Champagne said, adding that Ottawa aimed to be “a constructive partner at the table to support Africa.”
Beyond sovereign debt reform, Minister Champagne also told the Africa Bazaar that he held a bilateral meeting with the African Union G20 representative on Monday on the sidelines of the Ministerial.
He also highlights African youth population, describing Africa’s young population and expanding digital connectivity as a major commercial opportunity. “The future of Africa is tremendous,” Champagne stated. “When I think about Africa, I see opportunities and possibility. [Africa] has one of the youngest population in the world, and it’s always been, how can we engage the world and making sure that this new world of technology empowers them.”
Africa has one of the world’s youngest populations, a demographic advantage that could strengthen its position in technology, entrepreneurship and services if governments and investors can expand access to capital, education and digital infrastructure.
“Now if you are a great entrepreneur today from Africa, the world is your oyster,” Champagne said. “That’s why I have so much faith.”
Champagne also said Canada wants to deepen its engagement with the African Union and could participate in a future AU meeting if invited, framing the outreach as part of Canada’s longstanding relationship with the continent.
