By Celestine Avi
President John Dramani Mahama has called on African leaders to take bold ownership of the continent’s debt crisis, describing it as both self-inflicted and unsustainable.
Speaking at the African Union High-Level Conference on Debt in Lomé, Togo, the Ghanaian leader stressed the need for accountability, transparency, and a shift in debt governance, warning that Africa is “at a crossroads.”
Delivering his keynote address at the Presidential Dialogue on Public Debt in Africa on May 12, 2025, President John Dramani Mahama laid bare the continent’s growing fiscal vulnerability. Before an audience of heads of state, ministers, economists, and development partners, he described the current debt situation as a paradox.
“Africa today stands at a crossroads. On the one hand, we are witnessing commendable progress… yet access to affordable, long-term finance remains elusive,” he stated.
President Mahama lamented that in 2024, African countries spent more than $90 billion on debt servicing—“almost double the amount received in foreign aid”, a burden he warned was undermining public investments in health and education.
Referencing Ghana’s experience, President Mahama painted a candid picture of how his own nation was forced into restructuring after years of unsustainable borrowing, external shocks, and poor fiscal discipline.
“In Ghana, over the last several years there was an acceleration of debt accumulation, much of it going into budget support in a poor governance environment,” he said.
He pointed to the lessons Ghana has learned from its recovery process, including a recent $5.4 billion debt restructuring deal under the G20 Common Framework, and emphasized the importance of leadership.
“Sustainable debt is not just about ratios—it is about what debt finances, and the governance that underpins it,” the president stressed. “And here we, leaders of Africa, must take responsibility for the debt trap we find ourselves in.”
President Mahama also called for more flexible multilateral support aligned with domestic priorities, urging African countries to approach creditor engagement with transparency and urgency.
“This is not just a technical theme—it is a call to confront one of the most defining challenges of our generation.”
President Mahama’s speech set a tone of reflection, urgency, and responsibility, underscoring that Africa’s path to economic transformation will depend on sound debt management and committed leadership.
