President John Dramani Mahama has urged African leaders to take decisive ownership of the continent’s escalating debt crisis, calling it both self-inflicted and unsustainable.
Speaking at the African Union High-Level Conference on Debt held in Lomé, Togo, Mahama emphasized the urgent need for greater accountability, transparency, and reform in debt governance. He warned that Africa is “at a crossroads,” facing serious fiscal vulnerabilities.
Delivering the keynote address at the Presidential Dialogue on Public Debt in Africa on May 12, 2025, Mahama described the continent’s debt predicament as a paradox.
“Africa today stands at a crossroads. On the one hand, we are witnessing commendable progress… yet access to affordable, long-term finance remains elusive,” he told an audience of heads of state, ministers, economists, and development partners.
President John Dramani Mahama raised concern over Africa’s growing debt burden, revealing that in 2024 alone, the continent spent over $90 billion on debt servicing—nearly twice the amount it received in foreign aid. He cautioned that this unsustainable outflow is severely undermining public investment in critical sectors like health and education.
Citing Ghana’s own challenges, Mahama offered a frank assessment of how years of excessive borrowing, external shocks, and weak fiscal management forced the country into a difficult restructuring process.
“In Ghana, over the last several years, there was an acceleration of debt accumulation, much of it directed toward budget support in a poor governance environment,” he noted.
Mahama highlighted the lessons drawn from Ghana’s recovery efforts, including a recent $5.4 billion debt restructuring agreement under the G20 Common Framework, stressing that strong and responsible leadership is key to navigating the crisis.
President John Dramani Mahama also emphasized that sustainable debt goes beyond fiscal ratios, arguing that what matters most is how debt is used and the quality of governance behind it.
“Sustainable debt is not just about ratios—it is about what debt finances, and the governance that underpins it,” he said. “And here we, leaders of Africa, must take responsibility for the debt trap we find ourselves in.”
Mahama also urged for more adaptable and responsive multilateral support that aligns with African nations’ domestic priorities. He called on governments across the continent to engage transparently and urgently with creditors.
“This is not just a technical theme—it is a call to confront one of the most defining challenges of our generation,” he stressed.
His remarks set a tone of introspection and urgency, highlighting that Africa’s path to lasting economic transformation hinges on sound debt management and strong, accountable leadership.
