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The Deloitte Africa Lead for Infrastructure, Capital Projects and Economic Advisory, Mr. Appiah Lartey, has called for robust accountability structures in the public sector as well as a review of national debt sustainability frameworks to address the debt distress cycle that African countries go through.
He also said he would want to see the introduction of more efficiency in government administration including expenditure rationalisation, improved revenue mobilisation and a private sector participation in energy distribution.
Mr. Lartey, who stated while speaking during a panel session at the 2025 Crystal Ball Africa Forum in Accra, attributed the major causes of fiscal challenges and debt overhang to recurrence of large fiscal deficits, debt mismanagement and high debt service costs, government inefficiency as well as global socio-economic developments.
He therefore urged African governments to not only live within their means, but to also discover innovative means to accelerate development, particularly infrastructure.
On how a trade war between China and USA could impact Africa governments’ economic policies following the inauguration of Donald Trump as US President, Mr. Lartey proposed trade policy adjustments as well as financial market and investment policies to limit its impact on the continent’s economies.
He called on countries to intensify their efforts to diversify trade partners and strengthen economic ties with other regions to reduce dependency.
He also urged African governments to consider imposing stricter controls on foreign investments to manage the potential capital flight caused by market instability.
Mr. Lartey also advocated for strong regional and economic community collaboration among African governments as well as a strong currency policy, inflation control and debt sustainability measures to stabilize African economies in 2025 and beyond.
On how African countries can ensure that they have strong currency regimes, he advocated for import substitution, tariffs on imports and deliberate policy support for local businesses.
For debt sustainability, he urged African governments that have defaulted on their loans to renegotiate with their creditors, widen the tax net and adopt innovative financing solutions such as more Public Private Partnerships and green financing solutions.
He also urged businesses to adopt prudent financial management principles and optimise the cost going forward, employ technology to enhance business efficiency, among others.
The panel session members comprised, Professor Godfred Bokpin of the University of Ghana Business School; Ben Boakye, Executive Director of the African Center for Energy Policy and Dr. Olufunso Somorin, Regional Principal Officer, African Development Bank.
The Crystal Ball Africa is an annual Pan-African business forum held in January of each year, that provides deep insights on trends and issues that impact businesses in Africa.
It provides a platform for collaboration, networking and sharing insights on navigating the complexities of the African business landscape.
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