President John Dramani Mahama has urged African nations to strengthen public financial management (PFM) systems and embrace technology-driven accountability to sustain economic growth, citing Ghana’s recent debt crisis as a cautionary example.
Speaking at the third African Association of Accountant Generals (AAAG) Conference in Accra, Mahama cited Ghana’s default on external debt and subsequent credit rating downgrade as a lesson in fiscal discipline. Mahama mentioned that Ghana’s experience must serve as a lesson to the rest of Africa, noting that rapid debt accumulation and weak oversight had shut the country out of international capital markets.
The President detailed the reforms his administration implemented over 10 months to restore fiscal discipline. These include stricter spending controls requiring ministerial approval for expenditures, amendments to the Public Procurement Act to curb inefficiencies, and a legislated debt ceiling limiting borrowing to 45% of GDP by 2030. He also announced plans for value-for-money audits on major contracts and the decentralization of the Accountant General’s Department to reduce payroll irregularities, including payments to “ghost” workers.
President Mahama stressed the importance of modernizing tax systems and noted the creation of Ghana’s Gold Board as an example of enhanced resource sovereignty, which has increased foreign exchange revenues from gold exports. The president acknowledged that greater control of natural resources makes a difference, and Africa should not be ashamed of it.
He further urged the continent to leverage emerging technologies, including artificial intelligence, blockchain, and integrated financial management systems, to improve transparency, audit efficiency, and traceability in public spending, describing accountant generals as “frontline defenders of public accountability” and called for stronger institutions insulated from political interference.
He also emphasized harmonizing accounting and auditing standards across African regional blocs, including ECOWAS, SADC, and EAC, to boost cross-border investment and facilitate integration under the African Continental Free Trade Area (AfCFTA).
The president warned that corruption, weak procurement systems, and over-reliance on external borrowing continue to undermine African economies and erode public trust. “No economic model can succeed without trust,” he said.
The AAAG conference, themed “Africa of Tomorrow: Positioning Public Financial Management for Economic Prosperity,” brings together accountant generals and financial governance leaders from across Africa to share best practices, explore reforms, and promote digital innovation in public financial management.
