Unpacking Africa's Debt: Towards a Lasting and Durable Solution
This latest report on Africa’s development, which is based on this year’s Report of the United Nations Secretary-General on the New Partnership for Africa’s Development (NEPAD), confronts the urgent need to reform Africa’s debt structures, providing a roadmap for African nations to escape the constraints of unsustainable debt, reclaim fiscal space and refocus resources on a sustainable development agenda. In the post-COVID-19 economic landscape, Africa’s debt challenges have become an increasing barrier to development. External debt has climbed to more than $650 billion, and debt servicing costs reached nearly $90 billion in 2024, further limiting investments in critical areas. Over 40 per cent of African countries allocate more funds to debt service than to health—a stark reflection of how debt obligations are undermining Africa’s development goals. The report emphasizes that without substantial financial reforms, African nations face an unsustainable path. Africa’s rich resources should serve as a foundation for growth, yet a complex triple paradox and an inequitable international financial structure are hindering the continent’s progress toward the Sustainable Development Goals (SDGs). Without targeted interventions, the continent’s path to achieving the 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063 considerably narrows. This report offers actionable recommendations to help African countries regain financial autonomy, fortify their economies, and invest more directly in their citizens' future.
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