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Mahama shares Ghana’s debt restructuring lessons at AU conference
President John Dramani Mahama addressed fellow African leaders at the African Union Conference on Debt in Lomé, Togo, on Monday, sharing insights from Ghana’s experience with debt restructuring.
He emphasised the importance of transparency and timely engagement with creditors to avoid severe economic consequences from reactive debt management decisions.
The president highlighted the significant infrastructure gap facing Africa, which requires an estimated $130-170 billion in annual investment. He noted that the lack of access to affordable, long-term financing options often leaves nations with unsustainable debt burdens.
Citing IMF data, the President expressed concern that 22 African countries are currently in or at high risk of debt distress. He pointed out that the average public debt-to-GDP ratio in sub-Saharan Africa is projected to exceed 60% in 2025, a significant increase from 40% a decade ago.
Drawing from Ghana’s history, President Mahama referenced the Heavily Indebted Poor Countries (HIPC) initiative and the Multilateral Debt Relief Initiative (MDRI), which enabled Ghana to reduce its debt-to-GDP ratio from over 100% to under 30%. This, he explained, freed up crucial fiscal space for investments in key sectors like education, roads, and healthcare.
“Ghana, like many of our peers, has had to undergo painful restructuring to restore macroeconomic stability and rebuild investor confidence,” President Mahama stated.
He highlighted Ghana’s strategic use of concessional and non-concessional financing between the early 2000s and 2015 to accelerate infrastructure development and social inclusion.
The President detailed how, after initial progress, Ghana’s debt situation deteriorated due to a combination of unrestrained borrowing and multiple external shocks, leading to a debt-to-GDP ratio increase from 56.3% in 2016 to a peak of 90.7% in 2022.
He noted that by 2023, interest payments alone consumed 47% of total government revenue, a level deemed fiscally unsustainable by the World Bank.
The Accra High Court of Ghana has granted bail in the sum of GH¢30 million to Frederick Kumi, popularly known as Abu Trica, in a major development in his ongoing extradition case.
Abu Trica as part of the bail condition is expected to provide two sureties.
His lawyer, Oliver Barker-Vormawor, disclosed the decision in a Facebook post on Tuesday.
Frederick Kumi, also known as Abu Trica, has been at the centre of a prolonged legal process to extradite him.
The latest ruling allows him temporary freedom while legal proceedings continue.
His legal team is expected to provide further updates on the next steps in court.
By: Jacob Aggrey
The Public Accounts Committee (PAC) today commenced its second Zonal Public Hearing in Kumasi Ashanti Region to examine the 2024 Auditor-General’s Report on public schools and District Assemblies yesterday, April 20, 2026.
In her opening remarks, the Chairperson of the Committee, Abena Osei Asare noted that the Committee will consider four (4) Auditor – General’s reports, namely, District Assembly Common Fund (DACF) & Other Statutory Funds, The Accounts of District Assemblies for the Financial Year (IGF), Pre-University Education Institutions and lastly Colleges of Education in the year ending 31st December 2024.
She assured the various District Assemblies and other institutions invited to respond to infractions cited in the Auditor-General’s report that the Committee would be transparent in asking questions as well as granting opportunities to all to explain issues to the Committee.
Abena Osei Asare, allowed the Ranking Member of the Committee, Samuel Atta Mills to chair the sitting with the explanation that her government was in power then, therefore she could not chair over Auditor-General reports of 2024.
