Stakeholders at the 9th Annual Ghana International Trade and Finance Conference (GITFIC) have called on African leaders to establish permanent institutional mechanisms to oversee and regulate debt sustainability that will ensure that debt servicing remains below 10 per cent of government expenditure.
According to them, this measure would enable governments to allocate more resources to investment and employment opportunities, as opaque debt arrangements often hide liabilities that distort fiscal planning and undermine public confidence thereby overshadowing investments in critical areas such as health and education, and perpetuating poverty cycles.
This was stated in a communique issued at the end of the conference yesterday in Kumasi and signed by the Vice President of GITFIC- Afcfta, Mr Collins Elikem Tsorme.
The statement emphasised the urgent need to reform the international financial system to better respond to economic shocks in Africa, as current debt financing highlights the potential of debt as a tool for investment.
“The African Development Bank (AfDB) is actively working on liquidity solutions and financial stability frameworks tailored for African economies.
The current global finance architecture does not adequately address the development needs of the African continent. A reformed system should prioritise fairness, accessibility, and resilience,” It stated.
The statement further noted that many African nations face unsustainable debt levels; therefore, reform initiatives should include mechanisms for debt restructuring, relief, and equitable financing conditions that promote long-term economic stability.
“There is a critical need for increased participation of African nations in decision-making processes within international financial institutions, ensuring representation reflects the continent’s demographic and economic importance.
Financial reform is more than technical adjustments; it acts as a pathway for empowerment, youth engagement, and sustainable development across Africa,” the statement added.
It also called on African states to work together in solidarity and establish strategic partnerships with global institutions to advocate for necessary systemic changes, as a more equitable financial system is essential for safeguarding dignity and opportunities for future generations.
The statement said debt transparency is not merely a technical responsibility, but fundamental to building trust among debtor nations, creditors, and citizens and underscored the importance of adopting clear reporting standards for debt exposures, terms, and repayment schedules to prevent disorderly defaults and strengthen negotiations on relief.
It concluded with a collective call for Africa to assert its rightful position in the global economy, not as an enduring debtor, but as a partner in shared prosperity.
The 9th GITFIC was aimed at examining the 2nd Global Debt Initiative alongside the inaugural AfCFTA Tertiary Students’ Congress. It brought gathered policymakers, academics, students, and international stakeholders to address critical issues of debt within Africa and the Global South, focusing on sustainable development and the strategic role of tertiary education in facilitating intra-African trade within the AfCFTA.
BY TIMES REPORTER
