Executive Secretary of the UN Economic Commission for Africa (ECA), Mr. Claver Gatete, has remarked that the public debt situation in Africa represents a more profound developmental challenge that urgently demands reform.
Gatete made these comments in a statement posted on the commission’s website on Wednesday.
He addressed the inaugural African Union Debt Conference in Lomé, Togo, which drew more than 500 participants, including heads of state, finance ministers, governors from central banks, and development collaborators.
This three-day event with the theme: “Africa’s Public Debt Management Agenda: “Restoring and safeguarding debt sustainability” was organised by the African Union Commission in collaboration with the Togolese Government.
Gatete highlighted five key areas that need attention to enhance Africa’s fiscal capacity, advocating for a new perspective on debt as a development asset and prioritizing investments in energy, infrastructure, and industry over mere consumption.
“Debt itself is not necessarily detrimental. What is crucial is its utilization,” he stated.
He emphasized the importance of transparency in managing debt and advocated for strategies that are owned by individual nations, accounting for liabilities stemming from state-owned businesses.
Gatete also called for updates to the global financial system, which he characterized as outdated and disproportionately favouring creditors.
The executive secretary urged enhancements to the G20 Common Framework and the creation of an African credit rating agency.
He mentioned that other significant priorities include increasing green and innovative financing methods, such as sustainability-linked loans and debt-for-climate arrangements.
Gatete further stressed the importance of boosting domestic resource mobilization through tax reforms, digitization, and addressing illicit financial outflows.
“The African Continental Free Trade Area (AfCFTA) stands as Africa’s most potent structural response.
“Africa has viable solutions. What is required is principled, collective action, and we at the ECA are prepared to undertake this journey alongside you,” said Gatete.
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President Faure Gnassingbé of Togo, who commenced the session, called for a collective African vision grounded in sovereignty, unity, and regional stability.
He urged attendees to reevaluate the global debt frameworks. In his view, debt, when leveraged wisely and responsibly, should facilitate the common welfare.
Former Ghanaian President John Mahama shared insights from Ghana’s debt restructuring journey, asserting that sustainable debt management must center on governance and developmental impact.
He encouraged Africa to unify its voice in international financial discussions.
Commissioner Moses Vilakazi from the African Union (AU) Commission stated that the debt crisis has evolved into a human development emergency and called for reforms led by African nations.
The conference is expected to conclude with the adoption of the Lomé Declaration regarding Africa’s debt, which will serve as a consolidated African stance to steer future debt discussions and reforms.
