Mahama challenges global financial system, demands fairer debt reforms for Africa

President John Dramani Mahama has criticized the current global financial system as “unequal and outdated,” arguing that African economies continue to face significant structural barriers in accessing finance, technology, and international markets despite their immense growth potential.

Speaking at the 12th Africa Debate in London on Wednesday, the President said meaningful global partnerships must begin with an honest assessment of the challenges confronting developing economies, particularly those in Africa.

“Redefining partnerships requires honesty. The current international financial architecture remains unequal and outdated,” Mahama stated.

According to the President, African countries continue to face disproportionately high borrowing costs even as they pursue economic growth, industrialization, and development.

“African countries continue to face disproportionately high borrowing costs despite carrying some of the world’s greatest growth potential,” he said.

Mahama also expressed concern about the slow delivery of climate finance commitments made by developed countries to support developing economies.

He noted that many of the pledges intended to help vulnerable nations adapt to climate change and build resilience have yet to be fully fulfilled.

The President further highlighted disparities in access to technology and innovation, arguing that advanced economies continue to dominate global technological ecosystems while African countries struggle to access the resources needed to compete effectively.

“Technology and innovative ecosystems remain heavily concentrated in the advanced economies,” he said, adding that trade barriers continue to limit opportunities for African producers seeking access to global markets.

“This must change,” he stressed.

Mahama also called for reforms to international trade arrangements, insisting that Africa must move beyond its historical role as a supplier of raw materials and become a hub for value addition and industrial production.

“True partnership requires trade that rewards value addition. Africa must no longer be seen as an exporter of raw materials only to import finished products at significantly higher cost,” he stated.

On debt sustainability, the President advocated for reforms to global debt restructuring mechanisms, arguing that existing frameworks are often slow and inadequate for countries facing financial distress.

“Debt reform that supports development is needed. Debt restructuring mechanisms must become faster, fairer and more inclusive,” he said.

Mahama also renewed calls for developed nations to honour their climate finance commitments, noting that Africa contributes only a small share of global greenhouse gas emissions but bears a disproportionate burden of climate-related impacts.

“Climate finance must be delivered. Africa contributes the least to global emissions and yet bears a disproportionate burden of the effects of climate change,” he stated.

The President’s remarks align with growing calls from African governments and regional institutions for reforms to the international financial architecture, including lower borrowing costs, expanded access to climate financing, and trade policies that support industrialisation and economic transformation across the continent.

He emphasized that creating a more equitable global system would not only benefit Africa but also contribute to sustainable global growth and shared prosperity.