As part of efforts to combat climate change, President John Dramani Mahama has called for the increased use of green and blue bonds across Africa to finance environmental protection, clean energy, and sustainable agriculture.
In his remarks at the opening of the African Union Conference on Debt in Lomé, Togo, President Mahama highlighted that Ghana is exploring these financing options alongside broadening its tax base, digitizing revenue collection, and enhancing domestic capital markets to reduce reliance on external borrowing.
The three-day conference, convened by the African Union Commission’s Department for Economic Development, Tourism, Trade, Industry, and Minerals (ETTIM), is themed: “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability.” It gathers AU Member States, policymakers, financial experts, and key stakeholders, including representatives from Ministries of Finance and African Central Banks.
President Mahama stressed the need for African leaders to recognize the shortcomings in current systems. He criticized the G20 Common Framework for being slow and creditor-driven, noting that only three out of five African countries that applied for the initiative have seen significant progress.
He also pointed out that vulture funds and aggressive litigation hinder good-faith restructuring efforts, and that the reallocation of Special Drawing Rights (SDR) remains well below the $100 billion target for Africa.
“These challenges require multilateral reform, and Africa’s voice must be included in the discussions,” he stated.
Ghana is committed to rebuilding its fiscal buffers, strengthening institutions, and promoting inclusive growth, but the President emphasized that fiscal consolidation should not come at the expense of social protection. He outlined three key priorities for Ghana:
- Protecting investments in education, youth empowerment, and rural development.
- Enhancing debt transparency through an independent fiscal council.
- Expanding the Ghana Infrastructure Investment Fund to attract private capital.
“Our aim is not just to reduce debt but to transform our economy. Debt should finance opportunities and support intergenerational progress,” he said.
Calling the Lomé conference a potential turning point for Africa, President Mahama expressed his support for a unified African position ahead of the 2025 G20 Summit, demanding timely, fair, and transparent debt restructuring frameworks. He also advocated for standardized debt transparency benchmarks across the African Union and the integration of climate adaptation and sustainable development goals into national debt strategies.
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