President John Dramani Mahama has called for a transformative shift in how African countries manage public debt, emphasizing transparency, responsible borrowing, and regional collaboration as key pillars.
Speaking at a recent high-level forum in Lomé, Togo, on Monday, May 12, Pres. Mahama criticized past debt trends in Ghana and the continent at large, highlighting that much of the borrowing has gone into consumption rather than development.
“In Ghana, over the last several years, there was an acceleration of debt accumulation, much of it going into budget support and consumption expenditure, and in a very poor governance environment,” he stated.
President Mahama proposed a three-point agenda for public debt reform. The first pillar, he said, is transparency and accountability.
“Debt should serve the people. This means strengthening parliamentary oversight, enhancing public debt audits, and promoting open budget systems,” Mr. Mahama noted, adding that less than 40% of African countries publish detailed debt reports, according to the IMF.
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The second pillar he outlined is productive, efficient, and responsible borrowing. He emphasized the need to link debt to high-impact, value-generating projects.
“In Ghana, we’re prioritizing value-added agriculture, renewable energy, road and digital infrastructure, and health and education, all with multiplier effects in jobs, exports, and innovation.”
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The third pillar is regional solidarity and global financial reform. Mahama urged Africa to advocate for fairer global financial rules and called for reforms in how credit rating agencies assess African economies.
“Africa must speak with one voice. Credit rating agencies must adopt methodologies that reflect our growth potential, not just penalize us for volatility we didn’t create,” he said.
President Mahama also endorsed innovative financing strategies like debt-for-climate swaps and green bonds, saying, “Innovation must guide our debt strategy. Ghana is exploring these options alongside broadening the tax base and strengthening domestic capital markets.”
