Africa urged to convert resources into bargaining power to reshape global debt rules

Introduction

At the sixth African Conference on Debt and Development (AfCoDD VI) in Nairobi, Kenya, experts urged Africa to leverage its natural resources, market size, and technological capacity as bargaining power to secure a stronger voice in the global financial system. Organised by the African Forum and Network on Debt and Development (AFRODAD), the conference brought together debt experts, policymakers, civil society organisations, and technology specialists to examine factors limiting Africa's negotiating strength.

The Call for Bargaining Power

The central call echoed throughout the conference: Africa must turn its assets into leverage. Jean Marcelin Brou, a professor presenting the Black Paper from the Stop the Bleeding Campaign, stressed that Africa needed to move from being a "rule-taker to a rule-maker" in international financial governance. The Black Paper links Africa's debt difficulties to natural-resource extraction, illicit financial flows, and debt servicing, describing a "triple drain": resources extracted without sufficient returns, revenues weakened by illicit outflows, and debt obligations consuming funds that could finance development.

The call gained urgency months after African Union leaders adopted the Common African Position on Debt, which seeks to strengthen the continent's collective hand in negotiations and push for changes to the global financial system.

The Black Paper's Findings

The Black Paper estimates that African governments spend an average of 16.7 per cent of their revenue on debt servicing, with more than 30 African countries spending more on debt servicing than on healthcare. Research by Léonce Ndikumana and James Boyce, cited in the paper, estimates that about $2.4 trillion flowed out of Africa between 1970 and 2018, including imputed interest.

The campaign calls for auditing and renegotiating extraction contracts, strengthening tax systems, giving communities a greater say, and using resource revenues to support manufacturing and agriculture. It also advocates for ending illicit financial flows, achieving tax justice, debt justice, and gender justice, creating a UN sovereign-debt workout mechanism, promoting local-currency financing, currency swaps, stronger African-led credit assessment institutions, and forming an African debtors' club.

Debt Transparency and Oversight

A parallel theme at the conference was the need for better debt tracking and parliamentary scrutiny. Douglas Bitonda Kigabo, an economic affairs officer with the United Nations Economic Commission for Africa, said governments should publish information on central government debt, sub-national governments, and state-owned enterprises, as well as government guarantees and other liabilities that could become public obligations.

Kigabo noted that weak laws, fragmented institutions, and inadequate oversight by parliaments and civil society hamper proper debt management. The World Bank reported in 2025 that over 75 per cent of low-income countries publish some debt information, but only about a quarter disclose loan-level details on new borrowing.

Masenate Molapo, programme manager for Trade, Industry, Finance and Investment at the SADC Parliamentary Forum, stressed that parliamentarians must scrutinise borrowing: "There has to be accountability. There has to be statistics. There has to be questions asked. Where is the money going? How is the money going to be used?" She added that the forum was working on a model law on public finance.

Grieve Chelwa, a professor and Chair of the Department of Social Sciences, said many legislators lack the technical knowledge to examine complex loan agreements.

Fiscal and Structural Dimensions

Speakers highlighted the scale of Africa's fiscal challenges. Paul Sikazwe, technical adviser on Debt at the African Union Commission, said about 21 African countries were at high risk of or already in debt distress, facing an immediate liquidity shortfall of about $21 billion and needing about $7.5 billion annually over the next decade to refinance maturing debt. The AU estimates Africa needs about $1.3 trillion in additional financing each year to meet the Sustainable Development Goals by 2030.

Patrick Ndzana Olomo, acting director of Economic Development, Integration and Trade at the AU Commission, said the COVID-19 pandemic exposed Africa's weak position in the international financial system, noting that of the $650 billion Special Drawing Rights allocation by the IMF, Africa received less than $40 billion.

Horman Chitonge, a professor at the Centre for African Studies at the University of Cape Town, linked Africa's debt problems to the structure of its economies. Dube Lang Salishango of Botswana warned that African countries would continue facing debt problems if they failed to change economic structures.

However, Aissata Bah Mwansa of Zambia's Ministry of Finance and National Planning cautioned against blaming the international financial system for all of Africa's debt problems.

In his keynote address, Jean-Emmanuel Pondi, a professor of political science and international relations, proposed a permanent team of African debt lawyers, economists, auditors, and financial experts to support governments in dealing with creditors.

Technological and Data Sovereignty

Technology featured prominently in the discussions. Michael Mollel, co-founder and CEO of Sartify Company Limited/PAWA-AI, said Africa's problem is not a lack of data but its fragmentation and lack of ownership, urging governments to develop shared digital systems. He posed a critical question: "If we take this loan, what will my status be?"

Lyla Latif, a faculty member at the University of Nairobi School of Law, said an information gap between African governments and creditors is a barrier to debt justice, noting that creditors have extensive data while governments often lack a complete picture of their obligations. She warned that dependence on foreign technology companies could create vulnerability if sensitive data are hosted outside African control.

Lavina Ramkissoon, African Union ambassador and co-chair of the council on AI, emphasised that Africa has less than one per cent of global computing capacity and needs to address its electricity deficit to build its own AI infrastructure. Grace Githaiga, CEO of KICTANet, said African data is already used by foreign institutions and credit-rating agencies.

The panel also discussed using satellite imagery and digital tools for monitoring projects financed through public borrowing.

Perspectives

Debt Justice Advocates

Speakers like Janet Zhou of AFRODAD and Chenai Mukumba of Tax Justice Network Africa emphasised systemic causes, arguing that Africa's debt crisis stems from external dependence, illicit flows, and extractive exploitation. They called for collective action and reforms to the global financial architecture.

Government and Institutional Voices

Officials like Aissata Bah Mwansa and Dube Lang Salishango stressed the need for domestic economic reform, cautioning against solely blaming the international system. Their comments suggest that African countries must also address structural weaknesses within their economies.

Conclusion

As AfCoDD VI concluded, a clear consensus emerged: Africa's wealth must translate into negotiating power. The conference underscored the interconnectedness of debt, data, and development, and the need for both systemic change and domestic reform to rewrite the rules of international debt governance.