Prez Mahama Calls for Innovative Debt Strategies at AU Conference in Togo
By Nii Trebi Hammond
President John Dramani Mahama has urged African countries to adopt bold and innovative approaches to public debt management, stressing that traditional models are failing to respond to the continent’s unique development challenges.
Speaking at the African Union Commission’s three-day Conference on Debt in Lomé, Togo, President Mahama emphasised that debt strategies must be reimagined to serve the goals of sustainable development and economic transformation.
“The question we must ask is, what is working, and what must change?” he posed, adding: “Innovation must guide our debt strategy.”
The event, organised by the AU’s Department for Economic Development, Tourism, Trade, Industry, and Minerals (ETTIM), brought together member states, central banks, finance ministries, regional blocs, civil society organisations and international finance experts. Under the theme: “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability,” the conference seeks to shape Africa’s collective response to rising debt levels on the continent.
President Mahama pointed to emerging instruments such as debt-for-climate swaps, which allow countries to restructure debt in exchange for climate resilience investments. He cited Barbados as a successful example and encouraged African states to adopt similar models.
“Green and blue bonds must also be scaled up to finance environmental protection, clean energy, and sustainable agriculture,” he added.
Using Ghana as a case study, he noted that the country is exploring various avenues including broadening the tax base, digitising revenue collection, and developing domestic capital markets to reduce reliance on external borrowing.
However, President Mahama did not shy away from highlighting what he called systemic failures in the current debt resolution mechanisms. He criticised the G20 Common Framework for being “slow and creditor-driven,” noting that only three out of five African applicants had made meaningful progress under the scheme.
He also expressed concern over the role of vulture funds and aggressive litigation tactics that derail debt restructuring efforts, as well as the failure to meet Africa’s SDR reallocation targets.
“These issues demand urgent multilateral reform. Africa’s voice must be heard at the table,” President Mahama said.
On Ghana’s economic strategy, he reaffirmed the country’s commitment to rebuilding fiscal buffers and institutions without sacrificing social protection. He outlined three priorities: protecting investments in education, youth and rural development; establishing an independent fiscal council to enhance debt transparency; and expanding the Ghana Infrastructure Investment Fund to attract private capital.
“Our goal is not just to reduce debt. It is to transform our economy. Debt must not erode our dignity or delay our development—it must finance opportunity and lay the foundation for intergenerational progress,” President Mahama concluded. The conference is expected to formulate Africa’s position on reforms to the global financial architecture and propose innovative debt financing models that can secure long-term sustainability without stifling development.
