Bank of Ghana Governor Dr. Johnson Asiama has called for urgent and coordinated global action to address rising debt vulnerabilities facing developing countries, especially in Africa.
Speaking at the 2025 African Consultative Group Meeting during the IMF/World Bank Spring Meetings, Dr. Asiama warned that the debt crisis was severely undermining efforts to achieve the Sustainable Development Goals (SDGs).
“Many developing countries, especially in Africa, face high and rising debt levels, with a shift in creditor composition, high rollover risks, and substantial financing needs,” he said.
He noted that by the end of 2024, nearly half of Sub-Saharan African countries were at high risk of or already in debt distress, leaving little fiscal space for critical social and development spending.
Dr. Asiama highlighted the worrying trend where per capita public spending on interest payments in many African countries had surpassed investments in health and education.
While commending the efforts of IMF Managing Director Kristalina Georgieva and the institution’s ongoing initiatives, he urged the Fund to scale up its support. He called for the maintenance of concessional facilities like the Poverty Reduction and Growth Trust and the replenishment of the Catastrophe Containment and Relief Trust to ease liquidity pressures.
“The IMF must strengthen its policy agility to help countries build resilience in a shock-prone world,” he said, adding that debt solutions must be integrated with SDG priorities and tailored technical support.
Dr. Asiama further called for an overhaul of the IMF’s debt sustainability framework to better reflect the unique vulnerabilities of low-income countries, including climate-related risks. He urged the Fund to enhance its early warning systems and refine its risk assessment tools.
On the issue of debt restructuring, he pressed for a more comprehensive approach, noting that the current frameworks were not sufficient. “We call on the IMF to use its convening powers to drive this dialogue at the Global Sovereign Debt Roundtable,” he said.
He also stressed the importance of better coordination among international financial institutions and regional bodies. “We need ambitious yet achievable concessional financing options, joint mechanisms, and innovative solutions like debt-for-climate swaps,” he said.
Dr. Asiama reaffirmed the commitment of African countries to sound fiscal management and economic reforms, but underscored the need for stronger international partnerships to match that commitment with action.
