By Hannah Ryder
African leaders, economists, and civil society gather for Lomé, Togo, for one important conference wey dem wan use tok about debt matter.
As debt servicing cost dey rise and wahala dey for geopolitics, dis conference wey happen from 12 to 14 May, 2025, na chance for Africa to change di story—on di continent own terms.
Learning from di past
Africa don see dis kain thing before. For di early 1980s, African countries enter debt wahala because global interest rate increase after oil shock.
Many of dem borrow money well to take build infrastructure and comot from colonial economic wahala. But when di crisis start, African countries no get support.
Through Organisation of African Unity (OAU) and di UN Economic Commission for Africa (UNECA), leaders gather for debt conferences for 1984, 1985, and 1987. Dem ask for international conference on Africa external debt, make dem fit talk with global creditors. But nobody answer dem.
A familiar storm and worsening dynamics
Forty years later, di matter still dey repeat itself. Global wahala like trade war, COVID-19, and climate change dey make interest rate dey go up.
Many African countries dey pay more than 10% interest on sovereign bonds wey no reach 10 years. To dey service dis kain debt dey carry money wey dem suppose use for development, even when di borrowing na for important things like energy or transport infrastructure.
Dis no be just normal problem—na structural wahala. Di development wey Africa need pass wetin di money wey dem dey make fit cover. For example, Zambia need $7–11 billion every year for infrastructure—dis one na like 26–38% of di country GDP. With di kind income wey dem get and di fact say about 70% of di people dey work for agriculture wey no dey bring cash, to expand tax base dey hard.
Zambia no dey alone. Most African countries need debt to develop—but di debt suppose better, fair, and affordable pass wetin dem dey get now.
To talk am another way, Africa external debt dey below wetin e suppose be, but e still dey account for just over 10% of all developing countries external debt. E dey close to di value of Sweden or Brazil external debt. Di problem na say di financial system dey make African debt look like wahala.
A turning point in Lomé
Di Lomé conference na big opportunity to change di story. Instead of to dey follow di old way like Highly Indebted Poor Countries (HIPC) programme, African leaders dey push for bold agenda wey go redefine di role of debt and challenge global financial norms.
Some of di topics wey dem discuss include:
Debt as a strategic tool: Dem go ask whether debt na bad thing or na necessary tool. Wetin be di best way to use debt? Wetin be di terms wey African countries suppose demand to reduce di cost of capital, especially for climate risk matter?
Fixing di restructuring process: Wetin be Africa vision for fair and fast restructuring process? Which creditors dey generous pass with di terms? How dem fit design system wey go encourage creditors to do better?
Tackling global bias: How global institutions like IMF, World Bank, and Credit Rating Agencies dey see Africa and debt? Wetin be di bias wey dem suppose change? Wetin African institutions fit provide to shape better perspective about Africa?
Reforming Bretton Woods Institutions: How dem fit work better for Africa? How Africa fit use di expanded governance for di boards and G20 to push for change, even if di big shareholders no gree?
Strengthening African financial institutions: Wetin African countries suppose do to protect and expand Africa financial institutions like African Development Fund? How dem fit move fast towards African Monetary Fund, African Investment Bank, and African Central Bank?
Empowering di private sector: How sovereign debt fit help Africa private sector grow—for example, through procurement and local content rules or Public Private Partnerships regulations? Wetin be di best examples wey Africa fit follow?
An African-led global plan
Di African Union Commission dey organise di conference and President Faure Gnassingbé of Togo dey host am. Di conference dey unapologetically Africa-first. E no be about to beg for sympathy or help, but to show new African-designed model wey see debt as tool for progress, no be trap.
E dey about bold, African-led innovations—like Development Reimagined borrowers club—wey go address Africa debt as structural necessity and opportunity for global efficiency.
Di outcome for Lomé suppose guide global debates, from di Fourth International Conference on Financing for Development (FfD4) for Spain to di G20 for South Africa and Jubilee 2025 year. Africa dey send clear message: di time don reach for new deal on debt.
As one African proverb talk, “Until di lion learn to write, every story go dey glorify di hunter.” For Lomé, we for Africa go carry di pen, make history no repeat itself.
The author Hannah Wanjie Ryder na di CEO of Development Reimagined.
Disclaimer: Di views wey di author express no necessarily reflect di opinions, viewpoints and editorial policies of TRT Afrika.
