Duty Station: Addis Ababa
Deadline: 15 May 2023
Job Description
Result of Service
The expected results of the technical support mission on credit ratings are as follows;
i. A report in French on the assessment of the debt strategy, policy and management frameworks with the aim of gaining a thorough understanding of the drivers of unsustainable debt dynamics and the tools and measures to develop debt optimization strategies.
ii. The findings of the report will serve as a basis for informing policy responses to strengthen debt management capacity.
Work Location
- Remote
Expected duration
- 6 months (45WD)
Duties and Responsibilities
BACKGROUND:
The COVID-19 pandemic has narrowed fiscal space and put additional pressure on public debt for many African countries. According to S&P Global Ratings, sovereign government borrowing has reached a record high of $14.871 trillion in 2020 and will remain above pre-pandemic levels through at least 2022. Governments have borrowed heavily to finance measures to address the effects of the COVID-19 pandemic and now face significant cost increases to service that debt. Recent surge of commodity prices and threat of inflation has worsened the prospect of post-pandemic recovery. Borrowing costs for emerging market economies have already risen significantly as central banks in these countries have tightened their monetary policy, largely by raising interest rates. According to the IMF, 60 percent of low-income countries are near or at a point where they are unable to meet their financial obligations and may have to undergo debt restructuring. This represents a significant increase from about 30 percent in 2015. Despite efforts such as G20 Debt Service Suspension Initiative (DSSI) and Common Framework for Debt Treatments, under which 38 out of 54 countries in Africa are eligible, the long-term structural and institutional challenges on public debt are not addressed.
Cameroon’s overall debt sustainability indicators have improved, due to a faster recovery from the pandemic, an improvement in the fiscal balance, and an increase in exports due to higher non-oil commodity prices. Nevertheless, according to the latest World Bank debt sustainability analysis, Cameroon remains at high risk of external debt distress and overall public debt. Debt dynamics will be further reinforced by the ongoing fiscal consolidation envisaged under the IMF-supported program, as well as reforms to boost exports and production. Fitch Ratings has affirmed Cameroon’s sovereign rating at ‘B’ with a stable outlook, although emerging fiscal and external financing pressures or heightened political instability and security challenges could lead to negative action or a downgrade.
To balance debt levels and burdens with financing needs requires a thorough and careful assessment of the cause, condition, and dynamics of a country’s public debt issues. Against this backdrop, the United Nations Economic Commission for Africa (ECA), with the support of the Agence Francaise pour le Developpement (AFD) seeks to recruit a consultant to carry out a study on the Assessment of African Countries’ Capacity to Ease into New Borrowings and Mitigate the Risks of New Debt Unsustainability in Cameroon.
The main objective of the assignment is to carry out a study on Cameroon (the ‘target country”) to assess debt strategy, policy, management frameworks, status, and outlook with an aim of gaining in-depth understanding of debt dynamics and rating actions, in order to propose policy responses to strengthen debt management capacity of government(s), with a particular focus on post-COVID recovery and private sector development.
DUTIES AND RESPONSIBILITIES
The consultant shall report and perform the following duties under the direction of the Director, Private Sector Development and Finance Division (PSDFD) of ECA, overall guidance and supervision of the Chief of Innovative Finance and Capital Markets Section (IFCMS), and day to day supervision of the designated ECA Officer.
1. Prepare inception report outlining the consultant’s proposed approach and workplan
2. Prepare an analytical note setting out the findings of desk review/research for preparation of the report
3. Analyse the fiscal policy and debt management frameworks
4. Analyse past and current efforts by government on public debt management, as well as their effectiveness and lessons;
5. Analyse the role of international organizations, development partners, private sector, and external/internal socio-economic factors on public debt management;
6. Formulate meaningful findings and lessons from the study,
7. Prepare the study report in French including policy recommendations on public debt management for long-term sustainability, with a focus on post-COVID recovery and private sector development.
8. Provide substantive inputs to the concept note and programme of the study report validation meeting
9. Present the report to the validation meeting
10. Finalize the study report incorporating all comments and observations from the validation meeting
Qualifications/special skills
- Advanced university (Master’s degree) in governance and public policy, economics, finance or risk management, or related fields is required. A PhD would be a significant added advantage.
- Progressively responsible experience in public financial management. A strong background working in the areas of debt management, cash management and government securities is required.
- A Good knowledge of relevant public financial management tools and methodologies, including PEFA, DeMPA and IMF/WB Debt Sustainability Analysis is desirable.
- Excellent drafting abilities and have proven abilities to prepare reports in a clear, concise and compelling manner in the required language.
Languages
- English and French are the working languages of the United Nations Secretariat. Fluency in spoken and written French is required for this consultancy.
- Knowledge of another UN official language is an advantage.
No Fee
THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.