President John Dramani Mahama has decried the debt trap developing countries are subjected to, saying Africa borrows at eight times more expensive rate than the rest of the world, a situation that entrenches underdevelopment.
"Africa borrows eight times more expensive than the rest of the world. That's where it starts. That's where the debt trap starts," the President said.
President Mahama was speaking on the rigged global financial architecture on the sidelines of the 81st UN General Assembly in New York on Friday (September 25, 2026) dubbed “A Conversation with President John Dramani Mahama”.
Illicit financial flows
President Mahama said beyond expensive borrowing, Africa loses huge sums through illicit financial flows, debt servicing and risk premiums. He estimated illicit financial flows at $90 billion annually through mis-invoicing and transfer pricing by Western corporations.
He explained that African commodities, including oil, are sold cheaply to affiliated companies in Europe where profits are booked, depriving African countries of tax revenues.
In addition, he said interest and debt servicing take another $80 billion out of Africa, while risk premiums account for a further $40 billion.
"So, that's $120 billion plus $90 billion. More than $200 billion out of Africa every year. Yet, total Official Development Assistance (ODA) into Africa is $70 billion in 2023. In 2025, that crashed to $30 billion.
"So, $30 billion comes in, and $200 and something billion leaves Africa. Those are the causes of the debt,” he stated.
Rigged system
President Mahama said when Africa talks about a world rigged against it and the need for a new global order and reform of the international financial architecture, that is what it means. Debt treatment, he said, is only palliative.
The President said Ghana had gone through the debt treatment framework but at a huge cost, with government having to pay billions of dollars to retire debt, funds that could have been invested in education, healthcare and infrastructure.
"We think that the whole global architecture must be looked at again in terms of the financial architecture and make it fairer for Africa. Africa must be able to borrow cheaper," he stressed.
President Mahama said Africa was demanding a bigger share in multilateral institutions. On the International Monetary Fund (IMF), he said Africa currently holds 4.5 per cent and is advocating for 10 per cent.
"Our demands are simple. We want a bigger say in the international multilateral institutions. We want to be able to borrow at better rates. We want these risk premiums addressed. It's like when you come to Africa, there are some savages going to eat you up. And so our credit risk premium is high. Those are the things we want to change, not only the framework," he said
