The Ghana International Trade and Finance Conference (GITFiC) has called on Africa and the global community to support its proposal for a Global Debt Initiative (GDI).
GITFiC emphasized that this initiative would open avenues for discussions aimed at achieving total debt cancellation, providing long-term relief to the economies of least developed and developing countries.
This proposal was highlighted in GITFiC’s position paper titled “Revisiting the Debt Burden on Developing and Least Developed Economies,” which was presented by Mr. Selai Koffi Ackom, the CEO of GITFiC, during a press briefing on the upcoming 8th Ghana International Trade and Finance Conference (GITFiC 2024), scheduled for September 6, 2024, in Accra.
“It is in the world’s collective interest to outline and implement sustainable global measures immediately to prevent an impending catastrophe,” Mr. Ackom stated.
GITFiC plans to form a team that will engage with creditors—both bilateral and multilateral, private and governmental—to present its stance and seek their support.
“We will offer debtor nations in Africa and the global south a voluntary opportunity to join our Global Debt Initiative, which will be addressed on a case-by-case basis,” Mr. Ackom explained.
He further elaborated that debtor nations participating in the Global Debt Initiative would need to demonstrate a commitment to transparency, provide a clear roadmap for debt management and sustainability, outline prospects for economic growth, and sign a Memorandum of Understanding (MoU) that details a pragmatic program to avoid future debt of similar magnitude.
“We believe that creditors are aware of the dire consequences of these debt situations and will not hesitate to consider and accept our proposal, which aims to promote global prosperity with a particular focus on Africa and the global south,” Mr. Ackom added.
The theme for the GITFiC 2024 conference is “A Call for a New Global Financing Pact: Collaborative Pathways to Economic Resilience and Global Prosperity.”
Mr. Ackom emphasized that economic resilience and global prosperity cannot be achieved in isolation. He pointed out that the interconnectedness of today’s world necessitates collaborative efforts where nations pool resources, share expertise, and align their objectives.
“As economies become more integrated through trade, finance, and technology, the spillover effects of economic policies and shocks have intensified, highlighting the need for a collaborative approach to ensure stability and prosperity,” he said.
He also noted that a global financing pact would provide a framework for countries to collectively address common challenges such as financial volatility, climate change impacts, and socioeconomic disparities. This pact would leverage shared resources, expertise, and policy coordination to promote sustainable development and resilience.
The conference aims to foster a unified approach to addressing the growing debt crises, promoting debt sustainability, and facilitating coordinated action among stakeholders. A key outcome of the conference is expected to be the formulation of a comprehensive framework for debt restructuring and relief, tailored to address the unique challenges faced by indebted nations.