At the ongoing 80th United Nations General Assembly in New York, President John Dramani Mahama mounted the global stage with a blunt and bold demand, calling for a reset of the global financial architecture which he believes is rigged against Africa.
President Mahama says Africa can no longer thrive under a financial system which only works for the West with no interest of one of the poorest continent at heart.
Before the world leaders who have gathered in the United States of America for the general assembly, President Mahama did not mince words but made bold demand adding that Africa is the future of the world.
“We demand not only a reform of the Security Council, but also a reset of the global financial architecture, which is currently rigged against Africa. Africa must have a greater say in the world’s multilateral financial institutions,” Mahama declared to world leaders.
The president call struck the heart of Africa’s growing frustration with a global financial order that has left the continent paying more for debt servicing to the West.
The High Debt Trap for Africa
Across Africa and much of the developing world, debt servicing costs have ballooned. Many analyst have indicated that African countries pay more in debt servicing than for health and education combined.
Governments spend billions each year just on interest payments, crowding out investments in hospitals, schools, roads, and industries. In Ghana and beyond, this imbalance means that entire generations risk being denied the social infrastructure necessary for upward mobility.
The injustice, critics argue, is compounded by what many describe as biased credit ratings and a punitive “Africa risk premium” that make borrowing excessively expensive. Even when countries pursue reforms and stabilize their economies, lenders still charge higher interest.
The Institutional Call for Reform
President Mahama’s call for reforms at the global stage is not the first. Some concerned analysts and institutions have already made similar calls. The call echoes that of the World Bank, IMF, and African Development Bank (AfDB) who have all been championing this campaign.
The institutions agree that the current financial arrangement no longer reflects today’s realities and Africa’s development needs hence the call for a reset.
For instance, the IMF, in its report titled the “IMF and the Future of the Global Financial Architecture” coordinated by the Africa High-level Working Group calls for a reimagined global financial system that better serves low- and middle-income countries.
AfDB has also been pushing for reallocation or “rechanneling” of SDRs through regional development banks, to direct more resources to African countries. Moreover, during its 2024 Annual Meeting, the AfDB emphasized reform of the global financial architecture, including strengthening its own capital, increasing its callable capital, and using its balance sheet more dynamically to support African development needs,
The World Bank, also,through webinars and institutional commentary has engaged in discussions around adjusting the global financial system to be more inclusive and responsive, especially in collaboration with other institutions like IMF and UNECA.
The Impact of the Skewed Financial Architecture & High Borrowing Costs
The impact of the rigged arranged lays bare before Africans, including Ghanaians. High borrowing costs translate into underfunded hospitals, overcrowded classrooms, delayed salaries, and roads that never get built.
In rural Ghana, it means children walk miles to school barefoot, while their government channels scarce revenue to bondholders in London and New York.
This lived-impact of the consequences of the skewed financial architecture against Africa reinforces President Mahama demands. A skewed global system is not just about numbers, it is about the lives which are negatively impacted.
The Bottom Line
For now, the campaign is gathering momentum. The world leaders are being called to reset the rules so that African nations can invest in people, not just pay creditors. Without that reset, President Mahama warned, the continent’s promise risks being stifled by a financial order stacked against it.
