AFRICA – In a gesture intended to redefine Africa’s economic outlook, hundreds of delegates gathered in Lomé, Togo, on 14 May to adopt a unified position on debt sustainability — a bold step toward reshaping how Africa manages and leverages public debt.
The Lomé Declaration on Africa’s Debt, decades in the making, was finalised at the close of a three-day conference convened by the African Union, the government of Togo, the African Development Bank, and the German Development Agency (GIZ).
Held at Hôtel 2 Février under the theme “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability”, the gathering featured strong calls for change from several African leaders.
Togolese president Faure Gnassingbé, host of the conference, called the moment a potential turning point:
“Debt must become a tool for development, not a budgetary straitjacket.” Ghana’s president John Mahama called for action on “one of the most defining challenges of our generation,” while Zambian president Hakainde Hichilema, speaking via video, echoed the urgency for reform.
Their shared message was clear: Africa must no longer be seen as a debtor seeking relief, but as a partner demanding reform and equity in the global financial system.
African Union Commissioner Moses Vilakati reaffirmed the political ambition behind the gathering, saying Africa must leave Lomé “with a unified voice and a concrete action plan to ensure debt becomes a driver of progress, not a trap.”
Claver Gatete, United Nations under-secretary-general and head of the Economic Commission for Africa, underscored the need for greater fiscal transparency, debt re-framing, and innovation, including tools such as green and blue bonds.
Representing AfDB president Dr Akinwumi Adesina, the bank’s chief economist, Prof. Kevin Chika Urama, urged policymakers to act boldly: to strengthen debt governance, invest in domestic revenue mobilisation, and build capital markets that can better serve African economies. He emphasised the need for homegrown solutions, supported by strong institutions and regional cooperation.
Urama also highlighted key African Development Bank initiatives designed to build debt management capacity across the continent:
- The African Debt Managers Initiative Network (ADMIN), launched in 2024;
- The Debt Management Forum for Africa (DeMFA) launched later that year;
- The Public Finance Management Academy for Africa (PFMA), established in 2022.
These initiatives, he said, are helping African countries share expertise, build institutional strength, and adapt international financial practices to African contexts.
Over three days, participants explored topics including credit ratings, debt restructuring, legislative oversight, and capacity building — with one overarching theme: Africa needs control over its own fiscal destiny.
One of the most consequential outcomes of recent cooperation between the African Union and Africa’s premier development finance organization has been the creation of three new pan-African institutions:
- The African Financial Stability Mechanism;
- The African Monetary Fund;
- The African Credit Rating Agency.
All three received formal endorsement at the 38th African Union Summit in Addis Ababa in February 2025 and are seen as vital steps toward greater financial sovereignty.
The conference concluded with a call for Africa to push for a UN Framework Convention on Sovereign Debt, which would provide a fairer, more effective global mechanism for managing and resolving debt crises.
Download the Lome Declaration on Africa’s debt, here.
The post Africa unites for sustainable debt management appeared first on Caribbean News Global.
