The President of the ECOWAS Commission, Dr Omar Alieu Touray, has said that debt sustainability is vital to achieving inclusive growth and development within the West African sub-region......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
He said this in an address delivered at the G20 Ministerial Conference.
The G20 or Group of 20, is an intergovernmental forum comprising 19 sovereign countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, the United Kingdom, and the United States), the European Union, and the African Union.
South Africa’s President, Cyril Ramaphosa officiated the Meeting of G20 Foreign Ministers under South African Presidency.
Touray in his address emphasized the critical role of debt sustainability in fostering inclusive economic growth and regional stability, adding that that a strategic approach to managing debt, was vital for West African nations to avoid the risk of economic stagnation, social instability, and limited progress in achieving long-term development goals.
He called for the strengthening of Regional Economic Communities as a means to enhance international cooperation, economic resilience, and multilateralism.
He stressed that debt sustainability is not just an economic concern but a fundamental driver of inclusive development, ensuring that countries can invest in crucial sectors such as education, healthcare, and infrastructure without being burdened by excessive financial obligations.
Experts had in recent times warned that a failure to manage debt efficiently could result in reduced fiscal space, increased dependency on external aid, and stunted economic growth.
Nigeria, the largest economy in West Africa, has faced growing concerns over its rising debt levels, with a significant portion of its national revenue allocated to debt servicing.
According to economic analysts, Nigeria’s debt servicing costs have outpaced its revenue growth, leaving little room for investment in critical development programs.
This challenge has been further exacerbated by currency depreciation, inflation, and dwindling oil revenues, which have historically been a major source of foreign exchange earnings for the country.
Other West African nations, including Ghana, Sierra Leone, and Liberia, are also grappling with high debt burdens, leading to constrained national budgets and increased socio-economic hardships.
Ghana, for instance, has had to turn to the International Monetary Fund (IMF) for a financial bailout due to unsustainable debt levels and severe fiscal imbalances.
Similarly, countries such as Burkina Faso and Mali face additional challenges linked to security threats, which further strain their financial resources and economic stability.
The G20 Ministerial Conference, hosted in Johannesburg under South Africa’s Presidency, brought together leaders and policymakers from the world’s largest economies.
As the only African nation in the G20 prior to the recent inclusion of the African Union as a permanent member, South Africa has played a pivotal role in advocating for increased African representation in global economic governance.
President Cyril Ramaphosa, who officiated the meeting, underscored the significance of multilateral engagement in shaping a more equitable international economic system.
Touray’s address resonated with the broader theme of the conference, which focused on strengthening international partnerships and cooperation amid evolving global challenges.
He emphasized that Regional Economic Communities provide a framework for regional policy coordination, infrastructure development, and trade expansion, all of which are essential for sustainable economic progress.
As ECOWAS continues to champion regional integration, Touray’s address at the G20 Ministerial Conference underscored the urgent need for sustainable debt management strategies, stronger institutional frameworks, and increased global cooperation.
His call for responsible debt policies and enhanced financial governance reflects a broader vision of economic resilience, shared growth, and sustainable development in West Africa and beyond.
By implementing pragmatic debt management strategies and fostering regional collaboration, experts said West African nations can position themselves for long-term economic success while safeguarding the well-being of their citizens.