Mahama calls for fairer credit ratings for African economies and stronger regional institutions

African leaders are calling for reforms in global finance. They challenge unfair credit rating practices. They also advocate for stronger financial institutions in Africa. This was discussed at the African Union High-Level Conference on Debt.

President John Mahama gave a strong critique of credit rating systems. He stated that agencies should reflect Africa's growth potential. "They must not just penalize us for volatility we did not create," he said.

He pointed out that restrictive ratings worsen Africa's debt issues. In Ghana, interest payments consumed 47% of government revenue in 2023. The World Bank called this level unsustainable.

The conference stressed the need to strengthen regional financial mechanisms. President Mahama urged building capacity in African institutions like AfDB and Afreximbank. These institutions should offer finance tailored to local needs.

Delegates highlighted the importance of the Pan-African Payment and Settlement System (PAPSS). This system aims to reduce forex burdens and boost regional trade.

The Lomé meeting reached a consensus on a coordinated African position for global forums. "This moment must be a turning point for Africa," President Mahama declared.

He outlined four key demands:

First, a unified African stance at the 2025 G20 Summit for timely debt restructuring frameworks. Second, standardized debt transparency benchmarks across AU member states. Third, integrating climate adaptation into national debt strategies. Finally, full implementation of continental financial systems.

The conference marked a shift in Africa's approach to global finance. "Let us leave here with a renewed vision," President Mahama concluded.

"A vision where debt is not seen as a crisis but as capacity." He emphasized acting as partners demanding reform, not just as debtors seeking relief.