President John Dramani Mahama has called for a new debt management agenda in Africa, emphasizing the need for transparency, accountability, and productive borrowing. Speaking at the African Union Debt Summit in Lomé, Togo, President Mahama urged African leaders to unite in reshaping the global narrative around the continent’s public debt. He proposed a three-pronged approach to unlock debt as a tool for development, focusing on:
– Transparency and Accountability: Strengthening parliamentary oversight, enhancing public debt audits, and promoting open budget systems. This is crucial, as less than 40% of African countries publish detailed debt reports, according to the International Monetary Fund (IMF).
– Productive and Efficient Borrowing: Tying borrowing to high-impact projects that deliver tangible returns, such as value-added agriculture, renewable energy, and digital infrastructure. These projects can yield multiplier effects in jobs, exports, and innovation.
– Regional Solidarity and Global Financial Reform: Advocating for fairer global financial rules and credit rating agencies that reflect Africa’s growth potential. This includes building the capacity of African financial institutions to offer concessional financing tailored to the continent’s development reality.
President Mahama emphasized the importance of protecting investments in key sectors such as education, youth empowerment, and rural development. He highlighted Ghana’s strategy to prioritize these sectors and shield them from budget cuts to promote inclusive growth. Investing in youth programs is crucial for laying the foundation for intergenerational progress and transforming the economy.
The President’s call for a new debt management agenda is driven by the need to ensure that Africa’s debt challenges do not undermine its development and prosperity for future generations. He stressed that African leaders must take responsibility for the continent’s debt crisis and work together to address it. By adopting a new public debt management agenda, African nations can unlock debt as a tool for development and promote sustainable growth.
In the context of Ghana’s experience, President Mahama shared lessons on debt restructuring, emphasizing the importance of timely and transparent engagement with creditors, flexible multilateral support, and sustainable debt management. He noted that Ghana’s debt history is emblematic of the broader African experience, with a significant increase in debt accumulation over the years.
To address Africa’s debt challenges, President Mahama called for a common African position ahead of the 2025 G20 Summit, advocating for standardized debt transparency benchmarks and the integration of climate adaptation and sustainable development goals into national debt strategies. He also emphasized the need to operationalize the African Monetary Institute and the Pan-African Payment and Settlement System
Story by: Ohemaa Adusi-Poku
