By Celestine Avi
President John Dramani Mahama has made a compelling call for a unified African response to the continent’s growing debt crisis, urging that debt must fuel opportunity, not perpetuate dependency.
Speaking at the First African Union Debt Conference in Lomé, Togo, President Mahama declared that “Debt must not erode our dignity or delay our development.”
Delivering his address under the topic “Policy Innovations: What Is Working and What Must Change,” President Mahama highlighted the urgent need for Africa to embrace innovative debt strategies while confronting the structural weaknesses of the global financial system that continue to disadvantage African nations.
“Debt must finance opportunity and lay the foundation for intergenerational progress,” the President told delegates. “Our goal is not just to reduce debt—it is to transform our economy.”
President Mahama advocated forward-looking measures such as debt-for-climate swaps, green and blue bonds, and digitised revenue collection systems to help African nations achieve sustainable development while reducing fiscal pressure.
He cited Barbados as a global trailblazer in this regard and called for African countries to follow suit.
“Ghana is exploring these options,” he noted, “alongside broadening our tax base, enhancing domestic capital markets, and strengthening institutions to reduce our dependency on external borrowing.”
While applauding innovation, President Mahama also pointed to global mechanisms that are failing Africa. He criticised the sluggish pace of the G20 Common Framework for debt treatment, the harmful impact of vulture funds, and the unfulfilled commitment of Special Drawing Rights (SDRs) for African countries.
“These issues demand urgent multilateral reform—and Africa must be at the table,” he asserted.
Reaffirming Ghana’s commitment to responsible fiscal management, President Mahama said his government is determined to rebuild the country’s economic resilience without sacrificing essential social investments. He outlined his administration’s strategy to:
Protect investments in education, youth empowerment, and rural development
Establish an independent fiscal council to boost debt transparency
Expand the Ghana Infrastructure Investment Fund to attract private capital for development
“Our fiscal consolidation will not come at the cost of our people’s welfare,” he said. “We will pursue transformation, not just austerity.”
President Mahama called on the continent to adopt a Common African Position ahead of the 2025 G20 Summit, one that pushes for fair, timely, and transparent debt restructuring, standardised debt transparency, and the integration of climate adaptation goals into national debt strategies.
He also urged the full operationalisation of key regional financial institutions such as the African Monetary Institute and the Pan-African Payment and Settlement System (PAPSS) to ease forex burdens and strengthen intra-African trade.
In conclusion, President Mahama challenged African leaders to shift the narrative surrounding the continent’s debt.
“Let us leave here with a renewed vision. A vision where our economies are built not on extraction and aid, but on innovation and equity. Let us act not as debtors pleading for relief, but as partners demanding reform,” he said. “Africa, united in vision and action, can overcome its debt challenges and deliver prosperity for generations to come.”
The African Union Debt Conference brought together heads of state, finance ministers, development experts, and multilateral institutions to chart a new path for debt sustainability and inclusive growth across the continent.
