African countries should remain committed to pursuing credible fiscal consolidation, anchored on efficient expenditure rationalization and robust domestic revenue mobilization measures in order to address the fast-deteriorating debt dynamics in the continent.
This would help build buffers for critical social interventions and infrastructural development while safeguarding medium-term debt sustainability.
The Governor of the Bank of Ghana, Dr. Ernest Addison disclosed this at the 2023 Africa Consultative Group Meeting with the Managing Director of the IMF, Kristalina Georgieva in Washington on Sunday.
“To boost fiscal resilience, members are undertaking measures to improve public financial and investment management, enhance fiscal transparency and governance, address corruption risks, and progressively phase out untargeted subsidies,” he stressed.
The Governor further advised African countries to recognize the need to prioritize efficient debt management practices, consolidate debt data in a centralized system, publish reliable, comprehensive, and timely debt information, deepen domestic debt and capital markets to foster greater access to long-term finance.
He pointed out that domestic policy efforts alone were inadequate to sustainably address the debt burden and restore macroeconomic stability in the continent.
He indicated that, given the current context of fragmented global financial safety nets, much stronger support was needed from the IMF to prevent the region’s debt levels from spiraling out of control.
Patience Anaadem, ISD
