President John Dramani Mahama has issued a powerful call for African unity in tackling the continent’s mounting debt crisis, warning that unchecked borrowing threatens not only development progress but also the sovereignty of African nations.
Delivering the keynote address at the African Union (AU) High-Level Conference on Debt in Lomé, Mahama described the debt challenge as a “paradox of need and vulnerability,” where nations heavily reliant on external financing now spend more on debt servicing than on essential sectors such as health and education.
“Let us act not as debtors pleading for relief, but as partners demanding reform,” Mahama declared. “Africa, united, can turn debt into opportunity.”
Drawing on data from the International Monetary Fund (IMF) and the African Development Bank (AfDB), Mahama noted that 22 African countries are currently at high risk of debt distress. Sub-Saharan Africa’s average debt-to-GDP ratio has surged from 40% in 2015 to over 60% in 2025, with debt repayments hitting $90 billion in 2024—nearly double the foreign aid received that year.
Citing Ghana’s own debt trajectory, Mahama reflected on progress made under the Highly Indebted Poor Countries (HIPC) initiative, which reduced the country’s debt-to-GDP ratio from 100% to 30%. However, by 2022, Ghana’s debt had climbed back to 90.7% due to poor fiscal discipline and global shocks such as COVID-19 and inflation.
“In 2023 alone, interest payments consumed 47% of Ghana’s government revenue,” he noted, describing the country’s $5.4 billion debt restructuring in 2024 as a “critical but painful” step.
He distilled Ghana’s experience into three key lessons for the continent:
Engage creditors early to prevent fiscal collapse.
Align multilateral support with national development goals.
Prioritise good governance and transparency over mere debt ratios.
President Mahama proposed a bold, three-pronged strategy to reshape Africa’s debt landscape:
Transparency: With less than 40% of African countries publishing full debt data, Mahama called for continent-wide benchmarks to improve debt reporting and public accountability.
Productive Borrowing: He urged governments to direct borrowing toward transformative sectors like agriculture, renewable energy, and digital infrastructure.
Global Financial Reform: Mahama demanded overhauls to international credit rating systems and a strengthened role for African financial institutions such as the AfDB and Afreximbank in managing Africa’s financial destiny.
He also championed innovative financing tools—including debt-for-climate swaps, green and blue bonds, and enhanced domestic tax and capital market development—to reduce dependence on external debt.
Criticizing the sluggish implementation of the G20’s Common Framework for debt restructuring, Mahama noted that only three of the five African applicants had received substantial relief to date. He called for a faster, fairer, and more inclusive process that meets the unique challenges faced by African economies.
Looking toward the 2025 G20 Summit, Mahama urged African leaders to adopt a Common African Position, accelerate the operationalisation of the African Monetary Institute, and scale up the Pan-African Payment and Settlement System (PAPSS) to boost intra-African trade and economic self-reliance.
“Debt can be a catalyst for transformation, but it can also erode sovereignty if not well managed,” Mahama warned. “The time has come for Africa to speak with one voice and rewrite its debt narrative.”
The AU conference brought together a wide array of African leaders, policymakers, and global finance experts committed to reimagining the continent’s approach to debt and development. Mahama’s address set a decisive tone for collaborative action and systemic reform.
