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Former President Nana Addo Dankwa Akufo-Addo has revealed that Ghana’s debt restructuring agreement under the G20 Common Framework was one of the darkest and most painful episodes of his presidency. Speaking at the African Union (AU) – European Union (EU) High-Level Seminar in Brussels, Akufo-Addo admitted that while the program provided temporary economic relief, it came at a significant social and human cost.
The debt restructuring exercise had a profound impact on ordinary Ghanaians. The human impact was severe, with pensioners, young people, and small investors seeing their lives and livelihoods shattered. Akufo-Addo highlighted that the most painful part of the debt restructuring was the way it affected vulnerable groups. “The most painful part was the impact on ordinary people. Pensioners, young people, and small investors saw their lives and livelihoods shattered,” he said.
Beyond Ghana’s borders, Akufo-Addo emphasized that Africa’s broader debt challenges reflect systemic inequities in global finance. The continent’s $1 trillion debt burden is crippling, with over 30 African nations spending more on interest payments than public health. “Every dollar diverted to creditors is a dollar taken from a hospital, from a child’s vaccination, from a community’s future. This is not economics, it is inequity,” he stated.
Akufo-Addo renewed his call for bold reforms, specifically: Immediate debt service suspension to alleviate the burden on African countries. Comprehensive debt restructuring to address the root causes of Africa’s debt crisis. New concessional financing mechanisms to support African countries
He stressed that debt relief should be viewed as justice, not charity. “Debt relief for Africa is not an act of generosity. It is an act of justice,” he reiterated. Akufo-Addo proposed a new framework linking debt cancellation to climate action, known as Debt Relief for Green Investment and Resilience, which aims to address Africa’s vulnerability to climate shocks while promoting sustainable development.
Ghana’s experience with debt restructuring has been significant. The country entered the G20 Common Framework in 2023, restructuring $13 billion in Eurobonds and securing commitments that provided $10.5 billion in external debt service relief through 2026. The exercise reduced Ghana’s debt-to-GDP ratio from the mid-80s to 70.5 percent, boosted investor confidence, and supported an IMF programme.
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