Climate change: Mahama advocates scaling up of green/blue bonds across Africa

President John Mahama has called for more green and blue bonds in Africa. These bonds would help finance environmental protection, clean energy, and sustainable agriculture.

He spoke at the African Union Conference on Debt in Lomé, Togo. Ghana is exploring these options to reduce reliance on external borrowing. This includes broadening the tax base and digitizing revenue collection.

The three-day conference focuses on "Africa’s Public Debt Management Agenda." It aims to restore and safeguard debt sustainability. Participants include AU Member States, policymakers, financial experts, and civil society representatives.

President Mahama emphasized that African leaders must recognize failures in current systems. He noted that the G20 Common Framework is slow and driven by creditors. This framework addresses unsustainable debt for Low-Income Countries (LICs).

It aims to coordinate official creditors for timely debt restructuring. However, only three of five African countries have made progress under this framework. Vulture funds and aggressive litigation also hinder good faith efforts.

Mahama highlighted that SGRA reallocation remains below the needed $100 billion for Africa. He stressed the need for multilateral reform and a stronger African voice in discussions.

Ghana is committed to rebuilding fiscal buffers and promoting inclusive growth. However, fiscal consolidation should not compromise social protection. Their strategy includes protecting investments in education and rural development.

The second part of their strategy is enhancing debt transparency with an independent fiscal council. The third involves expanding the Ghana Infrastructure Investment Fund to attract private capital.

Mahama stated that reducing debt should not diminish dignity or delay development. Instead, it should create opportunities for future generations.

He believes this conference could be a turning point for Africa. He calls for a unified African position ahead of the 2025 G20 summit. This includes demands for fair debt restructuring frameworks and standardized transparency benchmarks across the continent.

Additionally, he advocates integrating climate adaptation into national debt strategies.