A vulture fund is a name given to a company seeking to make a profit by buying up ‘bad’ debt at a cheap price, then trying to recover the full amount through aggressive litigation in the courts. It is estimated that over 54 companies have taken actions against the 12 poorest countries in recent years for claims amounting to nearly $1.5 billion. The World Bank estimates that there is over $12 billion in external commercial debt owed by African countries. These lawsuits prevent countries from fully realizing the benefits of debt relief by shifting the benefits from development goals to the pockets of vulture funds. This happens at the expense of the countries and institutions that have forgiven debt. The ALSF provides legal and technical assistance to African countries facing lawsuits by these commercial holdout creditors.

The ALSF seeks to level the field by supporting regional member countries to ensure their legal rights are represented.