ECA Calls For Immediate Reform To Tackle Africa’s Debt Crisis

The Executive Secretary of the UN Economic Commission for Africa (ECA), Mr. Claver Gatete, has warned that Africa’s escalating public debt crisis is not only a financial issue but a deep-rooted development challenge requiring immediate reform.

Speaking at the inaugural African Union Debt Conference in Lomé, Togo, Gatete emphasized the need for urgent changes to address the crisis, which has drawn over 500 delegates, including heads of state, finance ministers, central bank governors, and development partners. The three-day conference, held under the theme “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability,” was convened by the African Union Commission in partnership with the Government of Togo.

In his address, Gatete outlined five key priorities to restore Africa’s fiscal space. These include reframing debt as a development tool, focusing investment on energy, infrastructure, and industry, and improving transparency in debt management.

“Debt is not inherently bad. What matters is how it is used,” Gatete stated, advocating for investments that build long-term infrastructure rather than immediate consumption.

He called for countries to adopt ownership of their debt strategies, including liabilities from state-owned enterprises, and underscored the importance of reforms to the global financial system, which he described as outdated and overly favorable to creditors. Gatete also urged improvements to the G20 Common Framework and the creation of an African Credit Rating Agency.

Another crucial element, according to Gatete, is the scaling up of innovative financing tools, such as sustainability-linked loans and debt-for-climate swaps, to meet the continent’s growing financial needs.

Strengthening domestic resource mobilization was also highlighted as a critical priority. Gatete pointed to tax reforms, digitization, and the need to curb illicit financial flows as essential components in building financial resilience within African nations. He also emphasized the importance of the African Continental Free Trade Area (AfCFTA) as a powerful structural response to Africa’s financial challenges.

“Africa has solutions, but we need principled, unified action. At the ECA, we are committed to working alongside you,” Gatete added.

Togo’s President, Faure Gnassingbé, who opened the conference, urged a collective African ambition based on sovereignty, solidarity, and regional stability. He called for a rethink of global debt rules, stressing that, when used strategically, debt should serve the common good.

Former Ghanaian President John Mahama shared Ghana’s experience with debt restructuring, emphasizing that sustainable debt management requires strong governance and a focus on development impact. He also encouraged Africa to present a unified voice in global financial negotiations.

Moses Vilakazi, Commissioner of the African Union Commission, echoed the sentiment, calling the debt crisis a “human development crisis” and advocating for African-led reforms.

The conference is expected to conclude with the adoption of the Lomé Declaration on Africa’s Debt, a unified position that will guide future debt negotiations and reforms across the continent.

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