President Mahama decries $80bn annual debt servicing burden on Africa
President John Dramani Mahama has criticised the global financial system for imposing unfair borrowing conditions on African countries, revealing that the continent spends about $80 billion annually on interest payments and debt repayments.
He said the high cost of borrowing, coupled with declining development assistance and illicit financial outflows, continues to undermine Africa’s efforts to achieve sustainable economic growth and improve living conditions.
Speaking at the FT Africa Summit in the United Kingdom, President Mahama argued that African countries were being disadvantaged by an international financial system that makes it significantly more expensive for them to access credit than Western nations.
“The global order is rigged against Africa. I have always maintained that position. We borrow at eight times the interest rates at which Western nations borrow,” he said.
President Mahama further highlighted the financial pressure on African countries dealing with climate change, arguing that the continent contributes relatively little to global greenhouse gas emissions but faces substantial costs in responding to climate-related disasters.
“We contribute just four per cent of greenhouse gas emissions, yet we borrow at eight times the cost to deal with the effects of flooding, forest fires and other climate-related challenges,” he stated.
He said the situation was particularly unfair to vulnerable countries that must borrow at high interest rates to finance recovery efforts and protect their populations from the effects of climate change.
“When the most vulnerable borrow at higher interest rates, it creates the kinds of problems we see,” the President added.
According to him, Africa’s financial challenges extend beyond debt servicing, with the continent also losing substantial resources through illicit financial flows, transfer pricing and related practices.
“Every year, about $80 billion goes out in interest payments and debt repayments. Another $90 billion goes out through illicit financial flows, transfer pricing and related practices,” he said.
President Mahama also expressed concern about the continued decline in Official Development Assistance (ODA), which he said was further limiting the resources available to African countries for development.
He noted that ODA declined by 23.5 per cent in 2025 and was expected to fall further in 2026, placing additional pressure on governments already struggling to meet their development needs.
The President questioned how other regions would cope with similar financial pressures, given the substantial resources leaving Africa annually.
“Africa is a very resilient continent. More than $200 billion goes out every year while ODA continues to dwindle. I wonder how Europe would have survived under those conditions, yet Africa is still on the map,” he said.
His remarks come amid growing calls from African leaders for reforms to the international financial architecture, including more affordable financing, fairer lending conditions and stronger measures to curb illicit financial flows.
President Mahama maintained that African countries must also strengthen domestic resource mobilisation and improve the management of their economies to reduce dependence on external financing.
He cited Ghana’s economic reforms as an example of efforts to improve public financial management, control expenditure and create fiscal space for investment in critical sectors.
The President has repeatedly argued that Africa’s quest for a fairer global order must be accompanied by greater self-reliance, stronger institutions and increased investment in productive sectors capable of generating jobs and prosperity.
He said a more equitable international financial system would benefit not only Africa but also the wider global community by creating opportunities for stronger economic cooperation and shared prosperity.
