Key Points
- Mahama supports the African Monetary Fund to reduce foreign loans.
- Africa spent over $90 billion on debt service in 2024.
- Ghana seeks independent fiscal oversight and investment reform.
Ghana’s former President John Dramani Mahama has called on African leaders to support the full implementation of the African Monetary Fund (AMF), saying it would help reduce the continent’s dependence on expensive foreign loans and boost financial stability.
Speaking at the African Union Debt Conference in Lomé, Togo, on May 12, Mahama urged the continent to strengthen regional financial institutions.
“Our countries need access to long-term, affordable finance, but the global financial system remains structurally unfair to Africa,” Mahama said.
He advocated for enhancing institutions such as the African Development Bank, AfriExim Bank, and the proposed AMF to offer concessional loans that reflect African realities.
According to Mahama, Africa spent more than $90 billion servicing debt in 2024, a figure that exceeds its total foreign aid and rivals the amount many countries spend on critical services like health and education.
Ghana pushes reforms to improve debt transparency and governance
Mahama pointed to Ghana’s recent debt crisis as a warning, stating that poor governance and excessive borrowing between 2017 and 2022 led to a sharp rise in the country’s debt-to-GDP ratio. He emphasized the need for responsible borrowing and transparent debt management.
“Debt must serve the people,” he said, calling for stronger oversight, regular audits, and public access to debt data. With fewer than 40 percent of African countries publishing detailed debt reports, Mahama argued that this must change to ensure accountability.
To address its debt challenges, Ghana is creating an independent fiscal council to oversee borrowing and spending decisions in real time.
The country also plans to expand the mandate of the Ghana Infrastructure Investment Fund to attract private capital to priority sectors.
African countries urged to unite for global financial reforms
Mahama stressed that while global financial structures are partly to blame, African nations must also take responsibility for how they manage debt.
He called for a single African negotiating position at the 2025 G20 Summit, where debt restructuring for low- and middle-income countries will be discussed.
He outlined three key principles for effective debt management: transparency and accountability, borrowing tied to productive investment, and regional cooperation for better financing terms.
“Debt must not be a sentence. It must be a tool for building better lives,” Mahama concluded.
The AU conference, held under the theme Africa’s Public Debt Management: Agenda in Restoring and Safeguarding Debt Sustainability, brought together heads of state, ministers, and development partners to tackle rising debt while safeguarding progress.
