Photo source : https://au.int/en/happening African leaders at he inaugural African Union Debt Conference.
Lomé, Togo – 20 May 2025
In a landmark move toward reshaping Africa’s fiscal future, the inaugural African Union Debt Conference concluded last week in Lomé with the unanimous adoption of the Lomé Declaration, signaling a powerful continental consensus on sustainable debt practices, transparent financial governance, and Africa’s rightful place in global economic decision-making.
Held from 12–14 May 2025 in the Togolese capital, the conference brought together African Heads of State, Ministers of Finance, Central Bank Governors, policy experts, parliamentarians, and international partners to tackle the continent’s deepening debt crisis. With over 60% of African nations now classified as either in or at high risk of debt distress, the stakes could not have been higher.
The Declaration, a comprehensive 50-point framework, affirms the continent’s collective commitment to:
- Promoting sustainable debt management
- Enhancing financial transparency and accountability
- Safeguarding national and continental development priorities
- Advocating for equitable African representation in global financial governance
A New Era for African Debt Strategy
In his opening remarks, President Faure Essozimna Gnassingbé of Togo described the current debt landscape as a structural challenge that demands both immediate attention and long-term reform. “We must ask ourselves what truly constitutes sustainable debt,” he said. “Africa cannot afford a financial architecture that ignores our development needs and the reality of our security, health, and education burdens.”
The Lomé Declaration advances Africa’s unified position on international debt restructuring mechanisms. It specifically calls for urgent reform of the G20 Common Framework, which many African leaders criticized as slow, fragmented, and ill-suited to the continent’s needs. Key demands include:
- The inclusion of middle-income countries in debt relief efforts
- The establishment of a supranational legal mechanism for fair and enforceable debt restructuring
- Time-bound and coordinated negotiations across public and private creditors
- The use of climate and nature-linked debt swaps
- Advocacy for Special Drawing Rights (SDRs) reallocation to African multilateral institutions, particularly the African Development Bank
Debt Management: Responsibility from Within
Beyond global reform, the conference emphasized domestic fiscal discipline and governance. Panels addressed post-pandemic borrowing trends, legislative oversight, and the importance of institutional capacity in restoring debt sustainability. Experts stressed the need for stronger parliamentary approval processes and greater public accountability for all new borrowing.
Participants also welcomed efforts to launch an African Credit Rating Agency, aimed at correcting perceived biases in current global ratings and reducing Africa’s borrowing costs on international markets.
Sessions on innovative financing models explored blended finance, green bonds, and public-private partnerships as alternatives to traditional debt instruments. With Africa’s development financing gap estimated at over $200 billion annually, such models were deemed essential to bridge fiscal shortfalls without exacerbating debt vulnerabilities.
Meanwhile, continental integration took center stage as AU institutions reaffirmed plans to operationalize key financial bodies, including the African Monetary Fund, African Investment Bank, and the African Financing Stability Mechanism. These institutions, delegates agreed, will be instrumental in buffering African economies against external shocks and enhancing regional monetary stability.
The Call for a Global Paradigm Shift
The most ambitious proposal came in the Declaration’s call for a UN Framework Convention on Sovereign Debt. This legally binding mechanism, modeled after global environmental accords, would create a fair, multilateral system for managing sovereign debt crises—ensuring timely relief, development-sensitive debt sustainability assessments, and transparency in negotiations.
To ensure momentum, the African Union will establish a Ministerial Committee on Debt to monitor the Declaration’s implementation and report progress to AU organs. A central goal will be harmonizing national policies with the principles agreed in Lomé, particularly through enhanced domestic revenue mobilization, legal reforms, and data transparency.
In a vote of thanks, AU leaders praised President Gnassingbé’s leadership, the Togolese government’s hospitality, and the African Union Commission’s role in coordinating the event. Special recognition was also given to Ghana’s President John Dramani Mahama and Zambia’s President Hakainde Hichilema for their contributions to the conference’s opening session.
Toward Agenda 2063
The Lomé Declaration is more than a communiqué—it is a call to action. As Africa pursues the ambitious goals outlined in Agenda 2063, the AU’s debt strategy must balance the urgent need for investment with long-term fiscal responsibility and equitable global partnerships.
With the adoption of this Declaration, Africa sends a clear message to the world: the continent is not merely seeking relief—it is claiming its voice, asserting its priorities, and charting a path toward a resilient and self-determined financial future.
