Ato Forson Calls for Fair Global Response to Africa’s $1.3 Trillion Debt Crisis

 

Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, has thrown his support behind growing calls for a fair and equitable resolution to Africa’s worsening debt burden, which currently exceeds US$1.3 trillion.

Speaking in Accra after receiving a petition jointly submitted by the African Regional Organization of the International Trade Union Confederation (ITUC-Africa) and the Ghana Trade Union Congress (TUC), Dr. Forson emphasized the need for a sustainable debt framework that reflects the economic realities of heavily burdened nations.

While acknowledging the severity of the crisis, the minister was clear that rejecting debt obligations outright is not a viable solution.

“Africa cannot simply declare that it will not pay. That would amount to debt repudiation,” Dr. Forson said. “However, there’s a distinction between not paying and being unable to pay. In the case of many African countries, including Ghana, the issue is not willingness but capacity.”

The ITUC-Africa and TUC Ghana petition advocated for full cancellation of Africa’s external debt, highlighting how current debt servicing obligations are crippling public investment in critical areas such as education, healthcare, and job creation.

Dr. Forson acknowledged these concerns and underscored that 23 African countries, based on debt sustainability assessments, are now unable to meet their debt obligations without sacrificing essential public spending.

“In many of these cases, the cost of debt servicing has crowded out necessary government expenditures. What is needed now is a comprehensive and fair debt restructuring mechanism that takes into account the fiscal vulnerabilities these countries face,” he added.

He also referenced Ghana’s ongoing debt restructuring efforts—both domestic and external—as an example of the need for a more inclusive global approach to debt resolution. He noted that the COVID-19 pandemic, global inflation, and currency depreciation have only worsened the situation across the continent.

Calls for debt relief have intensified in recent months, with civil society organizations, trade unions, and policymakers warning that without decisive international intervention, Africa risks being trapped in a prolonged cycle of debt dependency and economic instability.

Dr. Forson concluded by urging the global financial community to approach Africa’s debt crisis with empathy, responsibility, and a commitment to long-term development.

Source: Citinewsroom