The Ghana International Trade and Finance Conference (GITFiC) has advocated for the immediate adoption and implementation of its Global Debt Initiative to provide long-term relief for the economies of least-developed and developing nations.
The Initiative calls for comprehensive debt cancellation for debtor nations, particularly in Africa, as a crucial measure to alleviate governments from crippling debts exacerbated by the economic fallout of the COVID-19 pandemic and the Russia-Ukraine war.
Presenting key insights on the Global Debt Initiative at the 8th International Conference in Accra, GITFiC CEO Selasi Koffi Ackom warned that inaction could lead to deeper crises in least-developed countries, with potentially catastrophic global consequences.
“We are not just calling on the international community to listen, but urging for swift action. Global debt is not only a financial issue but a development challenge that impacts livelihoods, progress, and the future of global equity,” Ackom emphasized.
The GITFiC conference, held at the Accra International Conference Centre, gathered stakeholders to address the critical challenges shaping the global financial system. The Global Debt Initiative is being pursued in collaboration with the United Nations, the Ghana Catholic Bishops’ Conference, the African Union, the African Development Bank, and other international partners.
Ackom stressed that the current global economic crises underscore the urgent need for the Global Debt Initiative. He noted that existing debt relief frameworks, such as the Debt Service Suspension Initiative, offer only temporary solutions and lack long-term sustainability.
“The time for action is now. The world cannot afford to delay reforms to make the global financial system more inclusive, fair, and responsive to the needs of all nations,” Ackom added.
The African Development Bank projected that African countries will spend around US$74 billion on debt service in 2024, a 335% increase from US$17 billion in 2010.
Reverend Father Clement Kwasi Adjei, Secretary General of the Ghana Catholic Bishops’ Conference, supported the call for reforms, stressing that economic prosperity “should not be the privilege of a few” and advocating for fair trade practices and equitable debt relief to benefit citizens of developing countries.
Abdul-Fatawu Hakeem, Head of the Debt Policy Unit at Ghana’s Ministry of Finance, highlighted the significant influence of international credit rating institutions on Africa’s fiscal and monetary policies. He stressed that these institutions shape economic narratives, affect sovereign borrowing costs, and influence the allocation of funds.
“The Ministry of Finance supports the conference’s theme, especially at a time when innovative financing solutions are crucial to addressing economic challenges and improving the well-being of our citizens,” Hakeem concluded.