A bold call to action has been issued by President John Dramani Mahama, urging African nations to fortify their public financial management systems and embrace technology-driven accountability. This plea comes in the wake of Ghana's recent debt crisis, which serves as a stark reminder of the importance of fiscal discipline.
Speaking at the African Association of Accountants General (AAAG) Conference in Accra, Mahama highlighted Ghana's default on external debt and subsequent credit rating downgrade as a cautionary tale. He emphasized that rapid debt accumulation and inadequate oversight can have severe consequences, effectively locking countries out of international capital markets.
"Africa's economic growth relies on our ability to manage our finances responsibly," Mahama stated. "We must learn from Ghana's experience and ensure that such crises do not recur."
Over the past ten months, Mahama's administration has implemented a series of reforms to restore fiscal discipline. These measures include stricter spending controls, amendments to the Public Procurement Act, and the introduction of a legislated debt ceiling, limiting borrowing to 45% of GDP by 2030. Additionally, the government plans to conduct value-for-money audits on major contracts and decentralize the Accountant General's Department to address payroll irregularities.
Mahama also stressed the importance of modernizing tax systems and highlighted the success of Ghana's Gold Board, which has enhanced resource sovereignty and increased foreign exchange revenues from gold exports.
"Greater control over our natural resources is a game-changer for Africa's economic development," he said. "We should not be ashamed of leveraging our assets to drive growth and prosperity."
Furthermore, Mahama urged the continent to embrace emerging technologies such as artificial intelligence, blockchain, and integrated financial management systems. These innovations can enhance transparency, improve audit efficiency, and ensure traceability in public spending.
"Accountants general are the guardians of public accountability," Mahama emphasized. "We must strengthen our institutions and insulate them from political interference to ensure their effectiveness."
Mahama also advocated for the harmonization of accounting and auditing standards across African regional blocs, including ECOWAS, SADC, and EAC. This initiative aims to boost cross-border investment and facilitate integration under the African Continental Free Trade Area (AfCFTA).
However, Mahama warned that corruption, weak procurement systems, and excessive reliance on external borrowing continue to undermine African economies and erode public trust.
"Trust is the foundation of any successful economic model," he said. "Without it, our efforts to build prosperous and sustainable economies will falter."
On the topic of decentralization, Mahama called for comprehensive reforms to the Controller and Accountant General's Department (CAGD). He argued that the current centralized structure contributes to delays, inefficiencies, and financial leakages.
"Take, for instance, the case of a nurse in my hometown of Bole," Mahama explained. "The Accountant General in Ghana manages her payroll, but if she fails to report to work or abandons her post, her salary continues to be paid due to the bureaucratic delays in the system."
Ghana's Controller and Accountant General, Kwasi Agyei, revealed that over 57% of Ghana's domestic revenue is currently allocated to public sector salaries, warning that this heavy wage burden is crowding out critical expenditure in healthcare, education, and infrastructure.
The AAAG Conference, themed "Africa of Tomorrow: Positioning Public Financial Management for Economic Prosperity," brought together accountants general and financial governance leaders from across Africa. The event aimed to share best practices, explore reforms, and promote digital innovation in public financial management.
Frederick Riaga, AAAG Chief Executive Officer, emphasized the importance of transforming how governments manage public funds, urging the adoption of agile, digital, citizen-centered, and climate-responsive systems.
"Africa's development ambitions are closely tied to our ability to manage our public finances effectively," Riaga stated.
AAAG Chairperson, Malehlohonolo Mahase, described the conference as a movement to advance transparency, accountability, and effective service delivery in Africa's public sector.
The AAAG, a pan-African organization under the African Union, works to promote transformation, transparency, and accountability in the management of public resources.
"Together, we can build a brighter future for Africa," Mahase concluded.
