The African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) has urged African governments to reject loans that come with harmful and anti-labour conditions, warning that such agreements undermine the continent’s development priorities.
Speaking at the Pan-African Debt Cancellation Rally and Trade Justice Campaign in Accra, Akhator Joel Odigie, General Secretary of ITUC-Africa, stressed that while borrowing remains part of Africa’s financing landscape, governments must no longer accept deals that mortgage their economies and sacrifice social progress.
“Governments should reject loans with harmful, anti-development and anti-labour conditions; but where feasible, they can renegotiate for fairer, transparent, and pro-development terms,” Mr. Odigie said.
The Burden of Harmful Conditions
According to Mr. Odigie, conditions imposed by global lenders such as the IMF and World Bank, including austerity, wage freezes, privatisation, and cuts to social spending, have consistently harmed workers and citizens.
“These prescriptions weaken public services, shrink domestic industries, and deepen inequality. They treat economies like balance sheets, ignoring the human cost and the urgent need for structural transformation,” he argued.
Push for Fairer Negotiations
The ITUC-Africa chief noted that in cases where borrowing is unavoidable, governments must push back and renegotiate for terms that align with Africa’s development agenda.
This, he said, means ensuring that loan funds are directed toward job creation, social protection, climate adaptation, and industrialisation, rather than servicing creditors’ interests.
“Renegotiation is not about rejecting finance altogether. It is about demanding fairness so that borrowed resources serve our people, not punish them,” Mr. Odigie explained.
Mr. Odigie also linked harmful conditionalities to secrecy in debt management, insisting that transparency is key to preventing predatory deals. He called for the adoption of Debt Transparency Acts, mandatory parliamentary approval of all loan contracts, and union-led audits to ensure accountability.
“Too many of our governments sign opaque contracts that commit future generations to unfair repayment. We need openness, oversight, and citizen engagement at every stage of borrowing,” he said.
To avoid isolation in negotiations, Mr. Odigie called on African governments to adopt an African Doctrine on Debt and negotiate as a bloc. The doctrine would exempt climate and security-related spending from debt sustainability tests, enforce automatic standstills during crises, and set Africa-wide standards for responsible borrowing.
“No African country should face creditors alone. Together, we can speak with one voice, strengthen our bargaining power, and prevent unfair conditionalities from undermining our sovereignty,” he said.
A Path Toward Financial Sovereignty
Beyond rejecting harmful loans, Mr. Odigie argued that Africa must invest in building its own financial architecture. He reiterated ITUC-Africa’s call for the establishment of an African Credit Rating Agency by 2027, alongside the African Monetary Fund and other stability mechanisms, to reduce dependence on external institutions.
“We must break free from the chokehold of biased global financial systems. By creating African-led institutions, we take back control of our debt and development,” he said.
The rally came against the backdrop of rising debt vulnerabilities across the continent. More than 20 African countries are at high risk of debt distress, according to the African Development Bank. With governments turning to loans to finance budgets, social spending, and infrastructure, the question of loan conditionalities has become more urgent.
“The future of Africa cannot be dictated by unfair contracts. Rejecting harmful loans is both an economic necessity and a moral duty,” Odigie added.
