Development finance experts have urged the Ghanaian government to ring-fence any fiscal savings emerging from debt relief or restructuring agreements specifically for the protection of water sources and the fight against illegal mining, warning that without binding allocation rules, freed resources will be absorbed by recurrent expenditure rather than directed at the country’s worsening environmental and water security challenges.
The call was made at a press briefing organised by the African Forum and Network on Debt and Development (AFRODAD) on the sidelines of the 39th Ordinary Session of the African Union (AU) Assembly, which convened in Addis Ababa on February 14 and 15 under the theme “Assuring Sustainable Water Availability and Safe Sanitation Systems to Achieve the Goals of Agenda 2063.” President John Dramani Mahama attended the summit and was elected First Vice Chairperson of the AU for 2026 during proceedings.
Senior Researcher at the African Center for Economic Transformation (ACET), Dr Frank Adu, said debt-relief agreements negotiated by Ghana and other African countries should include binding provisions that earmark reduced debt-servicing savings for water infrastructure, river rehabilitation, treatment facilities and watershed protection. He argued that if debt servicing caps succeed in freeing up between two and three per cent of gross domestic product (GDP) in fiscal space and that space is directed toward water and climate-resilient infrastructure, the returns would exceed the value of the debt relief itself.
Adu further recommended that Ghana pursue debt-for-development swap arrangements as part of future restructuring agreements, under which portions of outstanding debt would be cancelled in exchange for verified domestic investment in specific environmental and infrastructure projects. He said transparency mechanisms and independent monitoring would be essential to prevent diverted funds from undermining the approach.
AFRODAD Interim Executive Director Dr Yungong Theophilus Jong said the effectiveness of any debt relief framework ultimately depends on the design of its restructuring conditions and whether provisions exist to ring-fence released resources for social expenditure. He said good debt governance, responsible borrowing, strong public finance management, extractive sector regulation and parliamentary oversight are all prerequisites for ensuring freed resources fund citizen-centred investments rather than non-developmental uses.
The urgency of the appeal reflects the direct connection between Ghana’s debt burden and its deteriorating water security. Illegal mining, widely known in Ghana as galamsey, has severely polluted major river systems including the Pra, Ankobra and Offin, forcing the Ghana Water Company Limited (GWCL) to increase chemical treatment expenditure and in some areas cut supplies to hundreds of thousands of residents, according to a 2024 assessment by the global non-governmental organisation WaterAid.
Ghana’s daily water demand is estimated at approximately 350 million gallons against production of roughly 220 million gallons, a structural deficit driven by population growth, ageing infrastructure and environmental degradation from mining activity. The Public Utilities Regulatory Commission (PURC) has cited higher treatment costs linked to polluted raw water sources as a factor in recent tariff adjustments.
Africa’s total public debt stands at approximately 2.14 trillion United States dollars (USD), equivalent to around 60 per cent of continental GDP, while external debt payments across the continent are projected to reach USD90 billion in 2026. The Group of Twenty (G20) Common Framework, designed to accelerate debt restructuring for low-income countries, has drawn criticism from African policymakers and civil society groups for slow processing, with Zambia and Chad each waiting years for agreements and negotiations with private creditors consistently lagging those with official lenders.
The summit concluded on February 15 with the AU designating 2026 as a year to accelerate progress on sustainable water availability and sanitation. Burundi President Evariste Ndayishimiye assumed the rotating AU chairmanship from Angola’s Joao Manuel Goncalves Lourenco at the summit. UN Secretary-General Antonio Guterres warned AU leaders of a USD4 trillion annual financing gap for Sustainable Development Goals (SDGs) and called for a tripling of adaptation finance for Africa.
Parts of East Africa are currently experiencing a drought-driven humanitarian crisis affecting approximately 4.6 million people, underscoring the continent’s exposure to climate shocks and the consequences of weak water infrastructure. Across Africa, an estimated 400 million people lack access to safe drinking water, a figure development agencies project will worsen as population growth and climate change continue to strain rivers, aquifers and dams.
