Africa’s debt burden has reached an all-time high of $1.8 trillion, representing nearly two-thirds of the continent’s total GDP — a situation the African Union (AU) warns is threatening growth, stability, and social development across the region, Business Insider Africa reports.
Speaking at the G20–Africa High-Level Dialogue on Debt Sustainability in Addis Ababa, AU Commission Chairperson Mahamoud Ali Youssouf, represented by Commissioner Francisca Tatchouop Belobe, said African governments are spending more on debt repayment than on essential services like healthcare and education.
In 2024 alone, $70 billion went to servicing debts, a figure that now exceeds what many nations allocate to human development.
Don’t Miss This: Dangote Declines Buying NNPC Refineries, Urges Others to Invest
“About 57 percent of Africa’s population lives in countries where debt servicing surpasses social spending,” Youssouf lamented, describing the crisis as a diversion of scarce public resources from critical sectors such as education, infrastructure, and healthcare.
The AU leader noted that Africa’s total public debt has ballooned from $120 billion in 1990 to $1.8 trillion today, even as economic growth remains sluggish at around 3–4 percent annually.
He called the current global financial system “a structure built for a world that should no longer exist” — one that measures creditworthiness with biased metrics and perpetuates inequality.
Youssouf urged the G20 to lead efforts toward a fairer and more inclusive financial architecture that gives Africa equitable access to global capital.
He proposed a “new financial compact” that reimagines debt management, fosters shared global responsibility, and enables the continent to play a stronger role in shaping economic policy.
“The challenge is not merely to manage debt,” he said, “but to reimagine the financial system that sustains this imbalance.”
Under South Africa’s G20 presidency, progress has already begun toward amplifying Africa’s voice on the global stage.
The establishment of an Africa Expert Panel marks a shift “from consultation to co-creation,” according to Youssouf — a move he says could transform Africa from “a borrower trapped by outdated rules into a partner shaping a new economic order.”
