Dr Frank Adu is a Senior Researcher at ACET
Ghana’s mounting debt servicing obligations are tightening fiscal space, but Dr Frank Adu, Senior Researcher at the African Center for Economic Transformation (ACET), believes debt-relief frameworks could be designed to unlock resources for water security and environmental protection.
Speaking at a press briefing organized by the African Forum and Network on Debt and Development (AFRODAD) during the 39th African Union Summit, Dr Adu argued that debt restructuring should not only provide fiscal reprieve but also deliver measurable environmental gains.
He stressed that frameworks must include clear allocation routes and transparency mechanisms that legally earmark savings for water, sanitation, watershed protection, and enforcement against environmental threats such as illegal mining.
He highlighted the potential of debt-for-development swaps, where cancelled debt is exchanged for verified domestic investments in river-basin rehabilitation, water treatment, and irrigation projects.
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According to him, such mechanisms, backed by independent verification, could ensure that debt relief translates into tangible improvements in water security.
Dr Adu further emphasized the importance of performance-based disbursement, linking funds to measurable outcomes such as expanded water access, reduced river pollution, and stronger enforcement against illegal mining activities.
The AU Summit placed debt and water crises at the heart of its agenda, underscoring growing concern over how financial constraints undermine Africa’s ability to safeguard natural resources.
With high debt servicing costs limiting fiscal space for environmental protection, the call for innovative debt-relief frameworks reflects the urgent need to balance financial stability with sustainable resource management.
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Source:
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