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Equatorial Guinea is the latest country to join the DMFAS community.
In June 2022, the DMFAS Programme of UNCTAD started a new project with Government of Equatorial Guinea in the framework of the Public Finance Modernisation Support Project (PAMFP) financed by the African Development Bank. The project is designed to strengthen the debt management capacities of the Caja Autonoma de Amortizacion de la Deuda Publica (CAADP), an autonomous debt management office under the Ministry of Finance, Economy and Planning. Its mandate is to manage the external and domestic liabilities of the Government, including the medium- and long-term debt securities.
Equatorial Guinea’s economy, which is highly dependent on the oil sector, has suffered in the past from low oil prices, leading to an accumulation of public debt. Additionally, a construction boom mostly financed or guaranteed by the Government has led to an increased debt burden in the fiscal budget and a weakening of the banking sector. While oil prices have been rising lately, the Government’s current account is negatively impacted by rising world market prices for food and other imported items. The Government recognises the importance of proactively managing its public debt portfolio to avoid future financial crisis and therefore approached UNCTAD for technical cooperation assistance in debt management.
During UNCTAD’s first mission to Malabo, UNCTAD conducted an institutional assessment of the CAADP applying the Debt Management Performance Assessment (DeMPA) methodology. Based on this assessment, UNCTAD elaborated recommendations for restructuring the DMO including a new organizational structure and terms of reference for each unit. Based on these recommendations, a procedures manual, a job description for the debt officers and job aids will be elaborated.
The installation of the DMFAS system is planned for January 2023, followed by 3-month period for establishing the debt database. These activities will be followed by capacity building activities in debt data validation, public sector debt statistics, management of contingent liabilities and debt portfolio analysis.
Forward looking, a follow-up project is planned for the interfacing of DMFAS with the integrated financial management system currently under development under the umbrella PAMFP project. This will contribute to achieving greater efficiency and reliability in the handling of debt operations. At the end of the project, the CAAPD will have a complete, reliable and up to date database on public debt (central Government), regular publications of debt statistics and debt portfolio analysis on its website, including an assessment of risks, sustainability and solvency indicators.
This will strengthen the Government’s capacity to fulfill its reporting obligations to its stakeholders, such as the IMF, World Bank and African Development Bank among others, thus increasing the transparency of public finances and improving its standing with its creditors and rating agencies.
Staff of the Caja Autonoma de Amortizacion de la Deuda Publica