Africa Union Debt Conference : Mahama Proposes 3 Pillars Public Debt Management Agenda for Africa

President of the Republic of Ghana H.E John Dramani Mahama has proposed new debt agenda for Africa mainly; Three Pillars of Transparency, Productive Borrowing, and Global Financial Reform.

According to President Mahama, If Africa is to shift from managing debt crisis to unlocking debt as a tool for development, then Africa must adopt a new public debt management agenda that is rooted in three foundational pillars.

Speaking at the African Union Debt Conference in Lome today, President Mahama called on African countries to adopt new debt management agenda such Transparency and accountability, stating Debt should serve the people, and strengthening parliamentary oversight, enhancing public debt audits and promoting open budget systems.

“According to the IMF, less than 40% of African countries publish detailed debt reports. This must change.” President Mahama.

Secondly spoke about productive, efficient and responsible borrowing. He said, borrowing must be tied to high impact projects that deliver tangible returns to our people.

“In Ghana, we are prioritizing value added agriculture, renewable energy, road infrastructure, digital infrastructure and health and education sectors. All these sectors yield multiplier effects in jobs, exports and innovation.” He added.

“Thirdly is regional solidarity and global financial reform, the third pillar, and with this, Africa must speak with one voice to push for a fairer global financial rules. Credit rating agencies must adopt methodologies that reflect the structural reforms and the growth potential of African economies, not just penalize us for volatility that we did not create.” He stressed.

President Mahama also called on African leaders to build the capacity of African financial institutions such as the African Development Bank, Afreximbank ,the AFC, and the proposed African Monetary Fund to offer concessional financing tailored to Africa’s development reality.

“Debt for climate swaps can help countries finance resilience while easing repayment pressures. And Barbados has led the way in this, and Africa should learn and follow suit.” President Mahama proposed.

According to President Mahama, Green and Blue bonds must be scaled up 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.” He disclosed.