Africa’s debt burden has surged to alarming levels, with the continent’s total debt stock now estimated at $1.8 trillion, roughly two-thirds of its total GDP.
The African Union (AU) has warned that this growing debt threatens long-term growth, social development, and fiscal stability across the continent.
At the G20–Africa High-Level Dialogue on Debt Sustainability, Cost of Capital, and Financing Reforms held in Addis Ababa, AU Commission Chairperson Mahamoud Ali Youssouf, represented by Commissioner for Economic, Trade, Tourism, Industry, and Mining Francisca Tatchouop Belobe, revealed that Africa’s debt-service payments exceeded $70 billion in 2024 alone, consuming an increasing share of public revenues, as seen on Business Insider Africa
“Many African governments are spending more on servicing debt than on investing
Saudi Arabia Yet To Decide On Investing In Egypt’s Red Sea Coast, Says Minister in human development. Approximately 57 percent of Africa’s population lives in countries where debt servicing surpasses social spending,” Youssouf said.
He highlighted that Africa’s public debt has risen from $120 billion in 1990 to $1.8 trillion today, even as economic growth has stagnated at around 3-4 percent annually.
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The AU chairperson warned that the spiralling debt service costs are “diverting scarce resources away from essential sectors like education, healthcare, and infrastructure.”
He called on the G20 and international lenders to address what he described as a systemic flaw in the global financial architecture: “It is a system built for a world that should no longer exist, one that measures creditworthiness through biased metrics and perpetuates structural inequality.”
Youssouf urged the creation of a “new financial compact” that recognises Africa’s shared responsibility in global economic growth and allows fairer access to capital. “The challenge is not merely to manage debt, but to reimagine the financial system that sustains this imbalance,” he added.
Under South Africa’s G20 presidency, efforts are being made to give Africa a stronger voice in global economic policymaking
South Africa Launches G20 Taskforce On Global Wealth Inequality. The establishment of the Africa Expert Panel, Youssouf noted, “signals a shift from consultation to co-creation, from inclusion to real influence.”
The AU views the ongoing high-level dialogue as a rare opportunity to “challenge long-held assumptions” and design practical reforms for a fairer global financial system, ensuring that Africa is no longer “a borrower trapped by outdated rules, but a partner shaping a new economic order.”
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Image Credit: Business Insider Africa
