Africa faces a substantial debt burden amounting to 64.3 percent of its GDP which significantly limits fiscal space for critical investments in education, health, infrastructure and other essential sectors, said Claver Gatete, Executive secretary of the United Nations Economic Commission for Africa.
“Structural vulnerabilities, including the lingering effects of COVID-19, climate shocks, conflicts and geopolitical tensions, as well as mounting debt burdens, continue to stifle Africa’s progress,” Gatete said while opening the eleventh session of the Africa Regional Forum on Sustainable Development in Kampala, Uganda on Wednesday.
He said Africa’s average GDP growth, since 2019 has hovered around 3 percent, which is far below the 7 percent needed to achieve SDG 8 on work and economic growth.
In light of current global developments, it is clear now that aid can no longer be considered a reliable or sustainable solution, and traditional financing models are increasingly misaligned with Africa’s development aspirations.
At this critical moment for Africa, we have no choice but to look inward and take bold, transformative actions anchored in evidence, innovation and inclusivity, including investing in the capacity of our people and institutions, to turn things around.
“Out of 144 measurable SDG targets, only 10 are on track, while 106 are progressing too slowly, with 28 regressing. In fact, at the current rate SDG 5 on gender equality will take decades to achieve and these risks undermining women’s contributions to social and economic progress. We simply cannot afford to continue at this pace,” Gatete said.
He further noted that four out of five African countries spend less than $86 per capita on health, which is well below the WHO’s recommended threshold minimum of $249. In 2022, health expenditure averaged just 7 percent of budgets, far from the 15 percent pledged in 2001.
Africa must close these gaps, and to do so, it should boost domestic financing, strengthen health systems and leverage digital health solutions.
He said Africa cannot prosper when half of its population remains economically marginalised and he called for dismantling this barrier.
“A 12 percent gender gap persists in mobile money access despite $1.3 trillion in transactions in 2022 highlighting systemic inequalities that must be addressed. We must enact policies that promote economic empowerment, including gender responsive budgeting, digital inclusion and leadership opportunities for women across all sectors,” he added.
Gatete further suggested that Africa needs to scale up vocational training, promote entrepreneurship, formalize jobs and invest in social protections to harness our almost 1 billion-strong working-age population by 2030.
MG/as/APA