African Central Bankers demand fair global debt support

African Central Bank Governors have called for intensified international cooperation and support from development partners, including the International Monetary Fund (IMF), to help the continent manage its soaring debt levels.
Speaking on behalf of the Governors at the 2025 African Consultative Group Meeting during the IMF/World Bank Spring Meetings in Washington, D.C., Dr Johnson Pandit Asiama, Governor of the Bank of Ghana, emphasized the urgency of the situation.
Held under the theme “Debt Vulnerabilities in Developing Countries—A Key Challenge for Achieving the Sustainable Development Goals (SDGs)”, the meeting highlighted how successive economic shocks have heightened financial fragility across the continent.
Dr Asiama pointed to the COVID-19 pandemic, escalating geopolitical tensions, climate-related disasters, and tightening financial conditions as major contributors to Africa’s mounting debt burden.

Debt distress threatens development priorities
According to Dr Asiama, nearly half of Sub-Saharan African countries were either in debt distress or at high risk of it by the end of 2024.
This grim statistic reflects the mounting challenge of debt service obligations that now dwarf public spending on critical sectors such as health and education.
“The situation is dire,” Dr Asiama said. “In many countries, per capita expenditure on interest payments has exceeded investments in health and education. This severely limits fiscal space and undermines our ability to meet SDG targets.”
He stressed that while African governments are committed to enhancing revenue mobilization, rationalizing expenditures, and pursuing economic reforms, these national efforts alone are not enough.
“We need more than domestic action. We need global solidarity, and we need it now.”

Urgent calls for IMF action and policy agility
Central Bank Governors emphasized that in a world increasingly prone to economic shocks, the IMF must strengthen its role in supporting vulnerable countries, particularly in Africa.
Dr Asiama urged the Fund to maintain concessional financing under the Poverty Reduction and Growth Trust and to replenish the Catastrophe Containment and Relief Trust, both of which play vital roles in easing liquidity constraints and alleviating debt burdens.
“The IMF must remain agile in its policy responses and proactive in its engagement with member states. Securing financing assurances for the Global Resource Allocation (GRA) income framework is essential,” he added.
The Governors also called on the IMF to prioritize inclusive growth strategies that integrate SDG objectives into debt management and macroeconomic policies.
They advocated for more customized technical support to strengthen macro-fiscal reforms, restore debt sustainability, and drive economic diversification.

Revamping the debt sustainability framework
In their wide-ranging appeal, the African Governors pushed for a revamped debt sustainability framework that reflects the unique vulnerabilities of developing countries.
They cited the need to account for climate-related debt risks, new borrowing instruments, and broader systemic issues.
“The current framework must evolve,” Dr Asiama asserted.
“We expect the IMF’s ongoing review of the Low-Income Countries Debt Sustainability Analysis (LIC DSA) to address critical gaps.
“Strengthening early warning systems and risk assessment tools will help avert future crises,” he added.

Debt restructuring and relief
The African Governors acknowledged the steps taken under the Global Sovereign Debt Roundtable (GSDR) and the G20 Common Framework but called for more decisive action.
Dr Asiama noted that the present mechanisms fall short of resolving the complex debt challenges facing many African economies.
“We need a broader, more coherent debt relief strategy,” he said. “The IMF must lead efforts to streamline restructuring processes, improve transparency, and ensure fair treatment across creditors. Private sector participation must be incentivized, and Multilateral Development Banks must be part of the solution.”
Dr Asiama emphasized that multilateral creditors’ deep exposure to debt-vulnerable nations warrants frank and inclusive discussions around equitable debt treatment and additional financial support.

Innovative financing needed
The Governors further called for greater alignment among international financial institutions (IFIs) to ensure coherent support for developing countries.
They urged the IMF and other bodies to tailor financial and technical assistance to reflect local contexts and diverse development needs.
“Africa’s debt crisis is intertwined with climate vulnerability,” Dr Asiama said. “Our response must therefore be innovative and comprehensive. Blended finance, debt-for-climate swaps, and joint financing mechanisms should be explored to unlock resources for sustainable development.”
He concluded by reinforcing the call for action: “We cannot address these complex challenges in isolation. The international community must act decisively. Africa is ready to partner. The IMF and development partners must meet us with the same urgency.”
As global attention increasingly turns toward economic resilience and climate adaptation, the messages delivered by African Central Bank Governors at the Spring Meetings underscore a pressing truth: solving Africa’s debt crisis is essential not only for the continent’s future, but for the world’s shared development agenda.