More than 20 African countries are either already facing debt distress or on the brink, Claver Gatete, Executive secretary of United Nations Economic commission for Africa (UNECA) said on Monday.
Gatete made the remark during the inaugural of the African Union Debt Conference, Lomé, capital of Togo, under the theme: “Africa’s public debt management agenda in restoring and safeguarding debt sustainability.”
In his speech seen by APA, Gatete said in 2024, Africa’s total public debt shot up to US$1.86 trillion, with average debt-to-GDP ratios rising from 44.4% in 2015 to 66.7% today.
When debt repayments outweigh investments in health and education combined, we must question the sustainability and human cost of our fiscal path.
He said across Africa, access to concessional finance is narrowing, while tariff escalations are weakening market access for African goods.
Accordingly, the executive secretary said many African countries are facing higher borrowing costs, reduced export revenues and tighter budgets, at a time when fiscal expansion is essential for inclusive growth.
“Africa is not merely confronting a debt crisis; it is facing a development crisis – one where debt servicing competes directly with health, education, infrastructure and the fundamental right to development,” Gatete said.
He said the international financial lifelines Africa once relied on, including Official Development Assistance, are fading.
According to the executive secretary, today, 83 percent of USAID programmes have been cancelled and traditional partners are tightening their budgets.
Gatete went on saying the cost of capital has surged, and the G20 Common Framework, unfortunately, remains slow, opaque and creditor-biased.
MG/abj/APA