Africa is sinking under the weight of public debt, which is straining its investment capacity. By 2025, it is expected to exceed 60% of GDP on average. In Lomé, a continental conference is opening to rethink the rules of the game. For three days, officials and experts will attempt to outline a common response.
Faced with persistently high public debt, with an average of over 60% of GDP expected in 2025, a series of roundtables is being held in Lomé, Togo, from May 12 to 14, 2025. The objective: to define an « African agenda » for sustainable debt management. As part of the African Union Debt Conference, experts emphasize the need for both national and international action in macroeconomic management.
There is so much to be done at the national level. There is the knowledge and capacity needed for macroeconomic management. There is also what needs to be done at the international level, where we must act and come to a common position, through the reform of the global financial architecture, on how we interact with the rest of the world, in terms of fixing international finances, but also on how we deal with debt and find a sustainable solution.
Claver Gatete, ECA Executive Secretary
The discussions in Lomé highlight several key areas for financial transformation, including the financing of productive sectors, national debt management strategies, reform of the G20 Common Framework, the creation of an African rating agency, the use of green and blue bonds, the mobilization of domestic resources, and harnessing the potential of the AfCFTA.
I think we must, of course, borrow sensibly, but above all, and I think this is the most important message, we must rely on our own strengths, rely on our internal resources. Debt is a consequence of budgetary management, so budgetary management must be sound, rational, and reasonable, budget deficits must be controlled, and governments must promote the development of tax revenues, fight corruption, strengthen transparency, and be innovative in financing a number of infrastructure projects.
Mohamed Boussaïd, Former Minister of Economy and Finance
Public debt is weighing down African finances; more than 20 countries spend more on it than their health budgets, and six more than their education budgets. In 2025, the debt-to-GDP ratio will approach 64% according to official data. The African Union Debt Conference is expected to result in the adoption of the Lomé Declaration, the cornerstone of a new African framework for sustainable public debt management.
