Banking consultant Dr. Richmond Atuahene has cautioned against mounting calls for a wholesale cancellation of Africa’s external debt, describing the proposal as unsustainable and a distraction from the continent’s deeper fiscal challenges.
He argued that Africa’s persistent debt crisis stems largely from weak capital investment, low revenue mobilization, and poor fiscal discipline, rather than the sheer size of its debt stock.
“Let me put it blunt: we (Africans) borrow and consume instead of investing in capital projects that can pay themselves back. So I disagree with the mentality that debts should simply be cancelled,” Dr. Atuahene stressed.
His remarks follow an August 29 rally in Accra, where the African Regional Organization of the International Trade Union Confederation (ITUC-Africa), in partnership with the Trades Union Congress (TUC-Ghana), demanded debt cancellation, branding it an act of reparative justice.
Africa’s external debt surpassed $1.3 trillion by the end of 2024, with the average debt-to-GDP ratio exceeding 60%.
Countries like Ghana and Zambia have already been forced into restructuring agreements.
Dr. Atuahene insists that blanket write-offs will do little to prevent recurring debt crises. Instead, he urged African governments to strengthen fiscal discipline, align borrowing with productive investments, and implement robust revenue mobilization strategies.
“African economies must shift from borrowing for consumption to borrowing for investment that drives growth and creates sustainable repayment capacity,” he emphasized.
Latest International Monetary Fund (IMF) data shows Ghana as the fifth most-indebted African nation to the Fund, with outstanding credit at SDR 2.70 billion as of August 2025.
Egypt tops the list with SDR 7.18 billion, followed by Côte d’Ivoire (SDR 3.10 billion), Kenya (SDR 3.02 billion), and South Africa (SDR 2.89 billion).
Dr. Atuahene added that while calls for debt relief highlight legitimate concerns about Africa’s fiscal stress, sustainable solutions lie in structural reforms, prudent fiscal management, and channeling loans into sectors that generate long-term growth.
