In a powerful display of continental unity, African leaders, policymakers, and development partners gathered in Lomé, Togo from 12–14 May 2025 to endorse the Lomé Declaration on Africa’s Debt, a historic step toward reshaping the continent’s approach to public debt management and global economic participation.
The African Union Conference on Debt, held under the theme “Africa’s Public Debt Management Agenda: Restoring and Safeguarding Debt Sustainability”, convened over 300 delegates, including heads of state, ministers of finance, central bank governors, and representatives of African multilateral institutions.
A Transformational Shift in Africa’s Debt Narrative
Togolese President Faure Gnassingbé, hosting the summit at Hôtel 2 Février, declared:
“Debt must become a tool for development, not a budgetary straitjacket.”
Echoing this sentiment, Ghana’s President John Dramani Mahama called the debt burden “one of the defining challenges of our generation”, while Zambian President Hakainde Hichilema, in a video message, stressed the urgency of establishing a new, fairer framework for debt restructuring.
The unified message was clear: Africa will no longer approach global finance as a passive debtor, but as a proactive partner advocating for justice, equity, and reform.
A Framework for Resilience and Growth
The Lomé Declaration acknowledges that over 25 African countries are either in or at high risk of debt distress. Leaders cited the USD 200 billion annual development financing gap as a major hurdle in achieving both the Sustainable Development Goals (SDGs) and Agenda 2063.
To confront this, the Declaration sets forth ambitious commitments, including:
Advocacy for a UN Framework Convention on Sovereign Debt to ensure transparent, inclusive, and legally binding solutions to debt crises.
Reform of the G20 Common Framework, with calls for enhanced creditor coordination, timely debt relief, and inclusion of middle-income countries.
Expansion of Special Drawing Rights (SDRs) and innovative financing tools such as green and blue bonds, Panda bonds, and Debt-for-Development swaps.
Institutional Innovation and Capacity Building
Key initiatives from the African Development Bank (AfDB) were spotlighted, including:
The African Debt Managers Initiative Network (ADMIN)
The Debt Management Forum for Africa (DeMFA)
The Public Finance Management Academy for Africa (PFMA)
These programmes aim to build robust debt management systems, enhance transparency, and promote African-driven financial solutions.
Additionally, three newly established pan-African institutions were celebrated:
The African Financial Stability Mechanism
The African Monetary Fund
The African Credit Rating Agency
All three were officially endorsed at the 38th AU Summit in February 2025 and are seen as critical tools for advancing financial sovereignty.
A Call for Structural Reform and Justice
Among the most forceful elements of the Declaration were appeals to:
Rechannel SDRs through regional development banks like the AfDB
Adjust international lending rules to consider climate shocks, security needs, and public health expenditures
Reform multilateral development bank (MDB) capital adequacy standards
Recognise and reverse the declining capital flows to African nations
African leaders also reiterated their call for developed nations to honour their commitment to allocate 0.7% of GNI to Official Development Assistance (ODA).
Towards a New Economic Architecture
AU Commissioner Moses Vilakati stressed the importance of a collective voice:
“Africa must leave Lomé with a concrete plan to ensure debt becomes a driver of progress, not a trap.”
This sentiment was reinforced by Prof. Kevin Chika Urama, Chief Economist of the AfDB, who urged nations to invest in domestic revenue mobilisation, reform fiscal governance, and scale up capital market development.
As delegates concluded the three-day summit, a Ministerial Committee on Debt was formed under the leadership of the Togolese Presidency to coordinate implementation of the Declaration across AU Member States.
A Continental Turning Point
The Lomé Declaration is more than a policy document — it is a continental manifesto for financial sovereignty. With Africa speaking in one voice, backed by institutional reform, political resolve, and a bold vision for shared prosperity, the continent is reclaiming its right to shape its fiscal future on its own terms.
Adopted in Lomé, Togo, on 14 May 2025, this Declaration marks a decisive step towards a new African economic order rooted in dignity, equity, and self-determination.
Download the Lome Declaration on Africa’s Debt, here
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Source: African Development Bank (AfDB)
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