Accra: African policymakers are intensifying calls for reforms to the global sovereign debt restructuring system, urging the International Monetary Fund (IMF) to address persistent delays and coordination failures under the Common Framework, even as recent cases such as Ghana's highlight both its potential and its limitations.
According to Ghana Web, the push gained momentum at the African Consultative Group meeting during the 2026 IMF/World Bank Group Spring Meetings, where finance ministers and central bank governors warned that the current system risks prolonging debt crises at a time when growth is projected to slow, as headwinds from external shocks are intensifying.
A joint statement issued by Seedy Keita, Chairman of the African Caucus, and Kristalina Georgieva, Managing Director of the IMF, said global growth is projected to ease to 3.1 percent in 2026 and 3.2 percent in 2027, with risks tilted to the downside if geopolitical tensions persist.
The outlook is more constrained for African economies. Growth is expected to slow to 4.2 percent in 2026 from 4.5 percent in 2025, reflecting tighter financial conditions, elevated debt service burdens, and limited access to affordable financing. The statement noted that spillovers from the war in the Middle East are adding pressure through higher inflation, weaker external balances, and risks of supply chain disruptions.
In view of this, policymakers are placing renewed emphasis on improving the efficiency and predictability of sovereign debt restructuring processes.
Speaking at the same meeting, Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, said the scale and persistence of overlapping shocks require a more decisive response from the IMF. He emphasized the urgent need to fix the sovereign debt resolution system, calling for time-bound restructuring processes under the Common Framework and stronger enforcement of comparability of treatment across creditor groups, including private lenders.
Ghana's recent debt restructuring has emerged as a central reference point in discussions on reform. The country moved from default and domestic debt restructuring in 2022 to securing an agreement with official creditors in January 2024, a timeline considered relatively fast under the Common Framework.
A distinguishing feature of Ghana's restructuring was the inclusion of domestic debt alongside external obligations. Authorities launched a Domestic Debt Exchange Programme in December 2022, before advancing negotiations with external creditors. Ghana's domestic debt restructuring programme is reported to have delivered about GHS60 billion in savings, roughly 30 percent of the domestic debt stock and about 7 percent of GDP.
Macroeconomic pressures are evident across Africa, where high debt service burdens and constrained financing conditions continue to limit policy space. Policymakers agreed that near-term priorities should include anchoring inflation expectations and protecting vulnerable populations through targeted support.
The Common Framework, introduced in 2020, was designed to provide coordinated and durable debt treatments for countries facing unsustainable debt levels. However, in practice, implementation has been uneven, with private creditor participation remaining a key challenge.
Beyond restructuring, African policymakers are calling for broader changes to the IMF's policy and financing toolkit. The BoG Governor advocated for scaling up concessional access, institutionalizing the rechanneling of Special Drawing Rights, and making facilities such as the Resilience and Sustainability Trust more flexible.
Even in Ghana's case, concerns remain about the longer-term implications of restructuring. The domestic debt exchange raised questions about financial sector resilience and the potential for reduced lending capacity. The restructuring reportedly delivered about GHS60 billion in government savings, easing fiscal pressure but causing losses across the financial system.
In view of the recent slower growth projections, persistent debt vulnerabilities, and external shocks, the call for reforms of the global debt architecture is intensifying. The experience of Ghana and Zambia suggests that while the Common Framework can deliver outcomes, its effectiveness remains constrained by coordination challenges and limited private creditor participation.