Lom©: As part of efforts to address climate change, President John Dramani has advocated the scaling up of green and blue bonds across the continent to finance environmental protection, clean energy, and sustainable agriculture. 'Ghana is exploring these options alongside broadening the tax base, digitizing revenue collection, and enhancing domestic capital markets to reduce dependency on external borrowing,' President Mahama stated in his remarks at the opening of the African Union Conference on Debt in Lom©, Togo.
According to Ghana News Agency, the three-day meeting is being convened by the African Union Commission's Department for Economic Development, Tourism, Trade, Industry, and Minerals (ETTIM) under the theme: 'Africa's Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability.' The conference will convene AU Member States, policymakers, financial experts, and key stakeholders, including representatives from Ministries of Finance, African Central Banks, Regional Economic Communities, African Multilateral Financial Institutions, and Civil Society Organizations.
President Mahama emphasized the need for African leaders to recognize what is not working. He pointed out that the G20 Common Framework, a debt treatment initiative for Low-Income Countries with unsustainable debt, remains slow and creditor-driven. This initiative aims to provide a structured approach to debt restructuring by coordinating official creditors to facilitate timely, orderly, and durable debt treatment, as well as ensure fair burden-sharing between official and private creditors. Of the five African countries that applied for the G20 Common Framework, only three had seen material progress.
Additionally, President Mahama highlighted issues such as vulture funds and aggressive litigation undermining good faith and restructuring efforts. He also mentioned that the Special Drawing Rights Allocation (SGRA) reallocation remains far below the $100 billion target for Africa. He advocated for multilateral reform and emphasized that Africa's voice must be heard in international discussions.
Highlighting Ghana's commitment to addressing these challenges, President Mahama stated that the country aims to rebuild its fiscal buffers, strengthen institutions, and promote inclusive growth. He outlined Ghana's strategy, which includes protecting investments in education, youth empowerment, and rural development, enhancing debt transparency through an independent fiscal council, and expanding the role of the Ghana Infrastructure Investment Fund to attract private capital.
President Mahama stressed the importance of transforming the economy and ensuring that debt finances opportunities and lays a foundation for intergenerational progress. He urged for a common African position ahead of the 2025 G20 summit to demand timely, fair, and transparent debt restructuring frameworks. Furthermore, he called for standardized debt transparency benchmarks across the African Union and the integration of climate adaptation and sustainable development goals into national debt strategies.
