Debt restructuring was “one of the darkest and most painful episodes” of my presidency — Akufo-Addo

Former President Nana Addo Dankwa Akufo-Addo

Former President Nana Addo Dankwa Akufo-Addo has admitted that Ghana’s debt restructuring under the G20 Common Framework was “one of the darkest and most painful episodes” of his time in office, acknowledging the severe human toll even as it restored macroeconomic stability.

Speaking at the AU-EU High-Level Seminar in Brussels on Thursday, October 2, 2025, ahead of the AU-EU Summit, Mr. Akufo-Addo reflected on the turbulence of Ghana’s debt crisis and the burden it imposed on ordinary citizens.

“I witnessed the suffocating grip of debt on our economy and our citizens. This deeply troubled me and still does,” he told African and European leaders.

Ghana entered the Common Framework in 2023, restructuring $13 billion in Eurobonds and securing $10.5 billion in external debt service relief through 2026. The deal reduced Ghana’s debt-to-GDP ratio from the mid-80s to 70.5 percent, revived some investor confidence, and anchored an IMF-supported programme.

But the former president made clear that the cost to ordinary Ghanaians was devastating. “The most painful part was the impact on ordinary people. Their lives and livelihoods were shattered,” he said, pointing to the struggles of pensioners, young people, and small investors who bore the brunt of the prolonged negotiations.

Zooming out to Africa’s wider debt crisis, Mr. Akufo-Addo painted an even starker picture: more than 30 African countries, he said, now spend more on servicing debt interest than on healthcare. “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 stressed.

He called for radical reforms to the global financial architecture — from immediate debt service suspension to comprehensive restructuring and concessional financing. Importantly, he rejected any suggestion that debt relief was a benevolent favour from creditors. “Debt relief for Africa is not an act of generosity. It is an act of justice,” he declared.

Mr. Akufo-Addo also unveiled a proposal for a “Debt Relief for Green Investment and Resilience” framework, which would tie debt cancellation to climate action. He reminded the audience that Africa, though contributing less than 4 percent of global emissions, suffers disproportionately from climate shocks.

“To our European partners, I say this: hear the voice of your neighbouring continent. Stand with the AU and South Africa’s G20 Presidency to advance ambitious reform of the Common Framework,” he urged.

Concluding his address, the former president warned that without a fairer financial system, Africa’s aspirations for economic transformation and stronger governance would be strangled by predatory lending and punitive trade terms. “The sacrifices we make today, the compromises, and the collaborations we engage in today can only inure to the benefit of our world. When Africa rises free from the weight of debt, the whole world rises with it,” he said.