President John Mahama has advised African leaders to adopt a new public debt management agenda to develop the continent and improve the wellbeing of citizens.

He pointed out that this can be achieved if leaders are transparent and account for loans acquired for economic development.

Speaking at the First African Union Debt Conference in Lome, Togo, President Mahama said borrowing must be tied to high-impact projects to reflect in the economic well-being of African people. 

“Debt should serve the people. This means 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”, he said.

He stated that debt must be seen as a channel to undertake high-end projects that will directly improve the living conditions of people.

President Mahama called for a paradigm shift in the publication of debt accounts to boost investor confidence in African economies.

“If we are to shift from managing debt crises to unlocking debt as a tool for development, then Africa must adopt a new public debt management agenda rooted in foundational pillars. The first is transparency and accountability”.

Citing Ghana as an example, President Mahama said the government has decided to channel debt into productive sectors of the economy that will directly improve the conditions of Ghanaians.

He stated for example that Ghana has decided to heavily invest in agriculture and manufacturing to create sustainable jobs.

“The second is productive, efficient, and responsible borrowing. 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 and digital infrastructure, as well as the health and education sectors”, he said.

The African Union Conference on Debt is a three-day event held under the theme: “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability.”

This conference convened AU Member States, policymakers, financial experts, and key stakeholders, including representatives from Ministries of Finance, African Central Banks, Regional Economic Communities, African Multilateral Financial Institutions, and Civil Society Organizations.

The Conference focused on ways to facilitate knowledge exchange and share cutting-edge practices in debt management in African Union Member States.

It is also aimed at formulating a position on the needed reforms to the current global financial architecture to address the current debt crisis on the continent.

The conference will also help formulate and discuss innovative debt financing mechanisms for securing new financing while maintaining debt sustainability.