Africa's creditors must cancel the continent's debts – ITUC-Africa

The General Secretary of the International Trade Union Confederation–Africa (ITUC-Africa), Joel Akhator Odigie, has called for the cancellation of Africa’s debts by its creditors.

According to him, Africa is drowning in debt, with more than half of its countries already in or at high risk of debt distress.

He stated categorically that debt servicing consumes over 50 percent of government revenues, leaving governments unable to finance essential services such as healthcare, education, wages, and social protection.

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In countries like Ghana, which have defaulted on debt payments, social spending has been severely curtailed.

“We, the undersigned - representing African trade unions, the Stop the Bleeding Campaign Network, and allied civil society organizations, write to you as hosts of this continental mobilization to transmit Africa’s unified demand to all creditors: Cancel Africa’s debt now as an act of reparative justice,” he said at the Pan-African rally in Accra on Friday, August 29, 2025.

ITUC-Africa is a pan-African trade union organisation representing working women and men in 52 African countries, including Ghana.

Here are the core demands of the Trade Unions

* Total and unconditional cancellation of Africa’s unsustainable external debts as an act of reparative justice. Freed resources must be channelled into jobs, wages, social protection, climate resilience, and structural transformation.

* A stand-alone UN Sovereign Debt Workout Framework, replacing the failed G20 Common Framework. It must include strict timelines, automatic standstills, binding participation of private creditors, and a neutral tribunal.

* An African Doctrine on Debt, exempting climate, resilience, and security spending from debt sustainability tests. It should recalibrate thresholds to reflect growth and demographics, and ensure automatic standstills during economic shocks.

* Africa’s financial safety net by 2027. Operationalise an African Credit Rating Agency to counter creditor bias.

* Transparency and accountability. Publish all loan agreements, release quarterly debt-versus-social spending scorecards, enforce parliamentary approval, and ensure independent union and civil society audits for all borrowing. Parliamentary oversight is essential.

* Curb predatory practices. Outlaw vulture funds and compel all creditors - bilateral, multilateral, and private to provide comparable treatment in debt restructuring.

* Mobilise domestic resources fairly. Broaden the tax base by taxing high-net-worth individuals, cancel wasteful exemptions, curb illicit financial flows, and issue US$50 billion in climate and social bonds by 2030.

* One African voice in global forums. Secure permanent African representation on global financing bodies, ensure fairer Special Drawing Rights (SDR) allocation, and apply climate and labour tests to all lending practices.

SA/MA

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