FIRST AFRICAN UNION DEBT CONFERENCE
Theme:
Africa’s Public Debt Management Agenda in Restoring and Safeguarding Debt Sustainability
Opening Remarks
By
Mr. Claver Gatete
United Nations Under-Secretary-General and
Executive Secretary of ECA
Lomé, Togo
12-14 May 2025
H.E. Faure Gnassingbé, President of the council of the Republic of Togo,
H.E. John Dramani Mahama, President of the Republic of Ghana,
H.E. Moses Vilakazi, Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment (ARBE), Acting Commissioner for Economic Development, Trade, Tourism, Industry and Minerals (“ETTIM”),
H.E. Essowè Georges Barcola, Minister of Economy and Finance of Togo,
Honourable Ministers,
Distinguished Delegates,
Colleagues and Partners:
It is a privilege to address you today at this historic inaugural African Union Debt Conference, under the theme: “Africa’s public debt management agenda in restoring and safeguarding debt sustainability.”
I wish to begin by commending His Excellency, Faure Gnassingbé, President of the Republic of Togo and the African Union Commission for convening this vital platform at this defining inflection point in Africa’s development journey.
Excellencies,
This conference could not be more timely.
Across the continent, access to concessional finance is narrowing, while tariff escalations are weakening market access for African goods.
For many of our countries, this translates into higher borrowing costs, reduced export revenues and tighter budgets, at a time when fiscal expansion is essential for inclusive growth.
Indeed, as we convene, Africa is not merely confronting a debt crisis; it is facing a development crisis – one where debt servicing competes directly with health, education, infrastructure and the fundamental right to development.
The question is: “What kind of solution do we need – and how urgently can we deliver it?”
Let us start with the sobering facts.
In 2024, Africa’s total public debt shot up to US$1.86 trillion, with average debt-to-GDP ratios rising from 44.4% in 2015 to 66.7% today.
Across the continent, more than 20 African countries are either already facing debt distress or on the brink.
When debt repayments outweigh investments in health and education combined, we must question the sustainability and human cost of our fiscal path.
Can we – or should we – accept this reality where repaying debt takes precedence over protecting lives and nurturing human capital?
Furthermore, it is unacceptable that today, only two African countries are rated investment grade.
Is it the case that our fundamentals are so weak – or are we being measured by outdated methods and narrow perceptions that fail to account for Africa’s potential?
And if Africa that holds 30% of the world’s critical minerals, 60% of its arable land and the youngest population on Earth is not considered bankable – then who is?
Yes, we need to provide the necessary capacity to countries to improve their ratings, but transparency is key.
This notwithstanding, Excellencies, we must also confront the reality of the changing global landscape.
The international financial lifelines we once relied on, including Official Development Assistance, are fading.
Today, 83% of USAID programmes have been cancelled and traditional partners are tightening their budgets.
Meanwhile, the cost of capital has surged, and the G20 Common Framework, unfortunately, remains slow, opaque and creditor-biased.
Faced with these headwinds, we have no choice but to chart a bold and principled new path.
And in this respect, allow me to outline five critical imperatives to reshape Africa’s debt landscape and restore fiscal sovereignty.
First, we must reframe debt as a tool for development, not destruction.
We must keep in mind that debt is not inherently bad; what matters is what it is used for.
In this regard, ECA champions a developmental approach, where borrowing is tied to productive investments in energy, infrastructure, industry and related services.
Simply put, we must stop borrowing to consume and rather borrow to transform.
Second, we must deepen transparency and strengthen debt management.
Africa needs comprehensive, country-owned strategies that capture all liabilities, including those from state-owned enterprises.
Transparency must evolve into a culture of accountability, building trust with citizens and investors alike.
And ECA is working closely with African governments to provide technical support, debt analytics and digital debt management tools to support this.
Third, we must urgently reform the global financial architecture.
The current system, regrettably, is no longer fit for purpose.
The G20 Common Framework must be transformed to become predictable, inclusive and equitable.
It must also welcome middle-income countries, bring private creditors to the table early, and be guided by the UN’s nine core principles – from sustainability to sovereign immunity.
In this spirit, we must accelerate the establishment of the African Credit Rating Agency, an institution that understands Africa’s realities, reflects its potential and restores fairness to the global perception of African risk.
Its objective is not to replace the existing rating agencies, but to complement them with greater transparency.
Fourth, it is imperative to scale up innovative and green finance.
Africa must lead in deploying instruments like green bonds, blue bonds and sustainability-linked debt to unlock climate-aligned capital.
Moreover, debt-for-climate and debt-for-nature swaps offer pathways to ease fiscal pressure, while investing in our planet.
Countries such as Cabo Verde, Gabon, Seychelles and Morocco are already showing the way, and the ECA remains committed to providing the required technical support, capacity building and championing initiatives like the Sustainable Debt Coalition.
Fifth, no solution is complete without strengthening domestic resource mobilization.
This means expanding and digitizing our tax base, closing leakages, leveraging technology and combating illicit financial flows which cost Africa over US$88 billion every year.
It also requires the development of robust and inclusive capital markets that can channel domestic savings into productive investments, provide long-term financing for the private sector and reduce reliance on external debt.
And let us not forget the AfCFTA, which is Africa’s most powerful structural response.
By creating a single African market of 1.5 billion people, it can boost regional value chains, industrialization, job creation and revenue mobilization – ultimately reducing dependence on external borrowing and strengthening fiscal resilience.
Excellencies,
Distinguished Delegates,
As I conclude, let me assure you that despite the magnitude of the challenges we face, Africa is not without solutions.
The Economic Commission for Africa is ever-ready to work with you every step of the way, to institutionalize this African-led platform, design sustainable debt frameworks, renegotiate burdensome liabilities and deliver tools and solutions rooted in Africa’s context to turn our story around.
I thank you.