By Hannah Ryder
African leaders, economists, and civil society have gathered in Lomé, Togo, for a pivotal conference on debt.
In the face of rising debt servicing costs and geopolitical instability, this conference from 12 to 14 May, 2025, offers Africa the chance to reset the narrative—on its own terms.
Learning from the past
Africa has been here before. In the early 1980s, African countries fell into debt crises triggered by global interest rate hikes after oil shocks.
Many of them had borrowed responsibly to invest in infrastructure and break free from colonial economic dependence.
Yet when the crisis hit, African countries found themselves unsupported.
Through the Organisation of African Unity (OAU) and the UN Economic Commission for Africa (UNECA), leaders convened debt conferences in 1984, 1985, and 1987.
They demanded an international conference on Africa’s external indebtedness, hoping for dialogue with global creditors. Those calls were ignored.
A familiar storm and worsening dynamics
Four decades later, the sense of déjà vu is overwhelming. Global shocks— trade wars, COVID-19, climate change—are driving up interest rates.
Many African nations now pay more than 10% interest on under-10-year sovereign bonds. Servicing expensive debt siphons funds away from development, even when original borrowing was for crucial needs, like energy or transport infrastructure.
This isn’t just a cyclical problem—it’s structural. Africa’s development needs far outpace what domestic revenues can cover.
For example, Zambia ideally needs $7–11 billion annually for infrastructure—the equivalent of 26–38% of its GDP. With a per capita income of $1,330 and approximately 70% of its 20 million citizens working in the non-cash agriculture sector, trying to widen the tax base for “self-reliance” is akin to either relegating the country to the world’s worst performing football league or giving up the game entirely.
Zambia is not an outlier. Most African countries need debt to develop—but better, fairer, and more affordable debt than currently available.
To put the case differently, Africa’s current external debt is well below optimal levels, yet accounts for just over 10% of all external debt by developing countries. It’s close to the value of Sweden’s or Brazil’s external debt. African debt is only a “problem” because the financial system has – so far – intractably made it so.
A turning point in Lomé
The Lomé conference represents a long-overdue chance to flip the script. Rather than sentimentalise heavily conditional approaches like the Highly Indebted Poor Countries (HIPC) programme, or stop at just adding new debt clauses or guarantees, many African leaders are now pushing for a bolder agenda that redefines the role of debt and challenges global financial norms.
Among the topics to be tackled are:
Debt as a strategic tool: Is debt bad, or is it a necessary tool? What are the most strategic uses of debt? What terms of concessionality and clauses should African countries demand to minimise costs of capital, including in the face of climate risks?
Fixing the restructuring process: What is Africa’s vision for a fairer, faster, and borrower-centric restructuring process? Which creditors are most generous with initial terms and reprofiling negotiations? How to design a system that encourages a race to the top by creditors?
The road to the COP29 climate summit in Baku this November is paved with difficulties as the Global North goes back on its commitment to fulfilling agreed financial responsibilities.
Tackling global bias: How do global institutions such as the IMF, World Bank and Credit Rating Agencies assess Africa and debt, and what biases need to be dismantled? What new analysis can African institutions provide about Africa, debt and the world to shape objective perspectives about Africa’s relative strengths globally?
Reforming Bretton Woods Institutions: How can these institutions better deliver for Africa operationally? How can Africa use of expanded governance on their boards and in the G20 to push for decisive change, even if major shareholders disagree?
Strengthening African financial institutions: What do African countries need to do to protect and expand Africa’s financial institutions and mechanisms such as the African Development Fund, beyond adding resources from within the continent? How can the continent accelerate progress towards an African Monetary Fund, African Investment Bank and African Central Bank?
Empowering the private sector: How can sovereign debt be channeled to enhance the opportunity for Africa’s private sector to grow – for example through procurement and local content rules, or regulations on Public Private Partnerships? What are Africa’s best case studies?
An African-led global plan
Convened by the African Union Commission and hosted by President Faure Gnassingbé of Togo, the conference is unapologetically Africa-first. It isn’t about asking for sympathy or salvation, but offering a new African-designed model that sees debt as a tool for progress, not a trap.
It is about presenting bold, African-led innovations – for instance Development Reimagined’s borrowers club - that address Africa’s debt not as the world’s problem, but as a structural necessity and an opportunity for global efficiency.
Crucially, Lomé’s outcomes must inform global debates, from the Fourth International Conference on Financing for Development (FfD4) in Spain to the G20 in South Africa and the Jubilee 2025 year. Africa’s message is clear: it’s time for a truly new deal on debt.
As the African proverb goes, “Until the lion learns to write, every story will glorify the hunter.” In Lomé, we in Africa will pick up the pen, and avoid history being repeated.
The author Hannah Wanjie Ryder is the CEO of Development Reimagined
Disclaimer: The views expressed by the author do not necessarily reflect the opinions, viewpoints and editorial policies of TRT Afrika.
