Ablakwa calls for global financial reforms, resource sovereignty

Samuel Okudzeto Ablakwa, the Minister of Foreign Affairs, on Wednesday called on Commonwealth member countries to champion reforms in the global financial architecture to address systemic inequalities confronting developing countries, particularly those in the Global South. He said African countries faced disproportionately high borrowing costs, with access to credit more than eight times as expensive as that available to countries in the Global North, worsening the continent’s debt burden and constraining development. Mr Ablakwa made the call at the Commonwealth Foreign Ministers’ Roundtable in St. John’s Antigua and Barbuda, where he outlined key areas requiring collective action to build a stronger and more responsive Commonwealth. He said the global financial system was structurally skewed against developing economies, with sovereign credit ratings and high-risk premiums contributing to borrowing costs and limiting Africa’s ability to attract investment. Referring to the Highly Indebted Poor Countries (HIPC) Initiative introduced in 2000, he noted that despite the debt relief achieved, many African countries had returned to similar debt difficulties barely two decades later. He said fundamental reforms were needed to enable African countries to mobilise affordable capital for infrastructure, education, healthcare, industrialisation and job creation. Mr Ablakwa said Africa’s youthful population, with a median age of 19, underscored the urgency of creating sustainable economic opportunities for young people. He expressed Ghana’s support for the Bridgetown Initiative, championed by Barbados, and urged the Commonwealth to prioritise proposals to reform the international financial system and improve access to development financing. The Minister also called for greater resource sovereignty, urging African countries to move beyond extracting and exporting raw materials towards local value addition and industrialisation. He cited President John Dramani Mahama’s Accra Reset Initiative, which seeks to promote greater African ownership of natural resources and ensure that their exploitation directly benefits local populations. Mr Ablakwa said growing global demand for critical minerals, particularly those needed for artificial intelligence and other emerging technologies, presented significant opportunities for Africa but also carried risks. He cautioned against partnerships that prioritised access to the continent’s resources without guaranteeing commensurate benefits, warning that such arrangements could perpetuate historical patterns of exploitation. He said engagements with international partners, particularly within the Commonwealth, should promote local processing, technology transfer, industrialisation and employment creation. “We no longer want to just be looting grounds, to be very blunt, where natural resources are just extracted. We want to add value,” he said. Mr Ablakwa said industrialisation and the creation of decent jobs were also essential to addressing irregular migration, particularly the dangerous journeys undertaken by young Africans across the Mediterranean in search of better livelihoods. On governance, he urged Commonwealth countries to prioritise local government reforms in response to the challenges of rapid urbanisation. He said Ghana was undertaking constitutional reforms to ensure that local government officials were elected rather than appointed, to deepen democracy and strengthen grassroots participation. The proposed reforms, he said, would give citizens greater influence over decisions affecting their communities, including the management of local resources. He encouraged Commonwealth member states to share experiences and best practices in decentralisation and local governance to improve democratic accountability and development outcomes. Mr Ablakwa cautioned against decentralisation arrangements that left local authorities effectively controlled by central governments through appointments, saying such systems denied communities meaningful participation in decisions affecting their development. He also commended the Commonwealth Parliamentary Association for supporting Ghana in capacity building, strengthening parliamentary institutions and promoting the fight against corruption. He said the Association’s continued partnership had contributed to strengthening Ghana’s democratic institutions. Mr Ablakwa, who is also a Member of Ghana’s Parliament, reaffirmed Ghana’s commitment to working with Commonwealth partners to advance shared development priorities through equitable partnerships, democratic governance and mutual respect.