The Executive Secretary of the UN Economic Commission for Africa (ECA), Mr Claver Gatete, has described Africa’s public debt crisis as a broader development emergency requiring urgent structural reform.
Gatete made this known in a statement published on the Commission’s website on Wednesday.
He addressed the issue during the inaugural African Union Debt Conference held in Lomé, Togo, which drew over 500 participants including Heads of State, finance ministers, central bank governors, and development partners.
The three-day meeting, themed “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability”, was organised by the African Union Commission in collaboration with the Government of Togo.
Gatete identified five key priorities for restoring fiscal space on the continent. These include rethinking debt as a development instrument and focusing investments on energy, infrastructure, and industry rather than consumption.
“Debt is not inherently bad. What matters is what it is used for,” he said.
He highlighted the importance of transparency in debt management and advocated for national strategies that account for obligations by state-owned enterprises.
Gatete also called for a reformed global financial system, which he criticised as outdated and skewed in favour of creditors.
He advocated for enhancing the G20 Common Framework and establishing an African Credit Rating Agency.
Additional measures outlined included expanding the use of green and innovative financing instruments such as sustainability-linked loans and debt-for-climate swaps.
He also emphasised the need to strengthen domestic resource mobilisation through tax reform, digitisation, and the reduction of illicit financial flows.
“The African Continental Free Trade Area (AfCFTA) remains Africa’s most powerful structural response.
Africa is not without solutions. What we need is principled, unified action, and we at the ECA are ready to walk this path with you,” he said.
President Faure Gnassingbé of Togo, who opened the conference, urged African nations to embrace a collective ambition centred on sovereignty, solidarity, and regional stability.
He encouraged delegates to reconsider global debt governance frameworks, adding that debt, when used responsibly, should serve the public interest.
Former Ghanaian President John Mahama shared insights from Ghana’s debt restructuring process, noting that effective debt management must emphasise governance and developmental outcomes.
He called on African countries to present a united front in global financial discussions.
Commissioner Moses Vilakazi of the African Union Commission described the debt challenge as a human development crisis and stressed the need for Africa-led reform initiatives.
The conference is expected to conclude with the adoption of the Lomé Declaration on Africa’s Debt, which will represent a consolidated African stance to shape future debt negotiations and reforms.
(NAN)