Debt relief should be financed as it is more efficient than new aid, and because it reduces the burden of managing aid, argues this paper from the UN Economic Commission for Africa. The paper says that debt relief is an important source of finance for African countries but on its own will be woefully insufficient to allow African countries to finance the Millennium Development Goals (MDGs) and achieve long-term debt sustainability. The paper also examines the rationale for further debt relief and the ways in which debt relief can be financed.