President Mahama Urges Overhaul of Africa’s Debt Architecture at AU Dialogue in Lomé
President John Dramani Mahama has called for a radical rethinking of Africa’s public debt architecture, warning that the continent’s mounting debt burden risks undermining both fiscal sovereignty and future development if left unaddressed.
Delivering the keynote at the African Union’s High-Level Conference on Debt in Lomé, Togo, on May 12, 2025, President Mahama painted a sobering picture of the continent’s debt profile, stating that Africa spent over $90 billion on debt servicing in 2024 alone—almost double the amount received in foreign aid. He stressed that this trajectory is fiscally unsustainable and constrains the fiscal space required for investments in health, education, and infrastructure.
“Africa is caught in a paradox,” Mahama said. “We are mobilising for growth but simultaneously shackled by debt service obligations that crowd out investment in our people.”
Citing Ghana’s own experience, Mahama recounted the country’s journey from HIPC relief in the early 2000s to a recent $5.4 billion debt restructuring agreement under the G20 Common Framework. He noted that while Ghana made significant infrastructure investments in the past, an acceleration in debt accumulation post-2016—amid external shocks like COVID-19 and global inflation—pushed debt levels to a peak of 90.7% of GDP by 2022.
“This was compounded by poor governance and excessive borrowing for budget support,” Mahama admitted, emphasising that African leaders must take responsibility for their countries’ fiscal trajectories.
Toward a New African Debt Compact
In his address, the Ghanaian leader proposed a three-pillar strategy for a renewed African debt management agenda: transparency, productive borrowing, and collective global advocacy.
He called for debt audits, open budget systems, and institutionalised parliamentary oversight, arguing that only 40% of African countries currently publish detailed debt reports. Further, he advocated for borrowing to be tied strictly to high-impact, transformative projects, pointing to Ghana’s current focus on renewable energy, agriculture, and digital infrastructure.
“Debt must serve the people”, Mahama stated, “not perpetuate dependence.”
In a marked shift toward financial innovation, the President endorsed green bonds, debt-for-climate swaps, and strengthened African development institutions. He also criticised the slow pace of the G20 Common Framework, saying it remained “creditor-driven and ineffective” for many African countries and decried the role of vulture funds and legal action that obstruct fair restructuring efforts.
Ghana’s Reform Commitments
Mahama outlined Ghana’s current fiscal reform priorities, including the establishment of an independent fiscal council, safeguarding social protection spending, and leveraging the Ghana Infrastructure Investment Fund to crowd in private capital.
He also backed calls for a Common African Position ahead of the 2025 G20 Summit, demanding systemic reforms in global credit rating methodologies and SDR reallocations and accelerating the operationalisation of the African Monetary Institute and the Pan-African Payment and Settlement System (PAPSS).
“Africa must act not as debtors pleading for relief but as partners demanding reform,” Mahama declared in his closing remarks, urging leaders to shift the narrative from debt crisis to debt as capacity.
Conclusion
President Mahama’s address in Lomé served as both a reflection on Ghana’s fiscal lessons and a continental call to action. His remarks reinforced the urgency of aligning debt sustainability with Africa’s development ambitions and institutional maturity.
As the continent faces rising global interest rates, climate pressures, and constrained development finance, Mahama’s vision for a new, accountable, and African-led debt compact may well frame the continent’s engagement in upcoming multilateral negotiations.
