The Executive Secretary of the Economic Commission for Africa (ECA) Claver Gatete has blamed rising debt, geopolitical instability and declining aid flows for putting African economies under pressure, according to a UNECA statement released on Friday.
In a briefing to the Africa Group of ambassadors at United Nations (UN) headquarters, Gatete highlighted the economic pressures on African countries with many of them facing debt distress, inflation and trade disruptions driven by global policy shifts.
“Real GDP across the continent is projected to grow between 2.9 percent and 3.6 percent,” said Gatete, noting that over half of African countries now carry public debt exceeding 60 percent of GDP.
“Seven are officially in debt distress, while 11 more are considered at high risk,” the executive secretary added.
Gatete said steep currency depreciation, inflation and widening current account deficits have deepened the strain. In Nigeria, the naira lost nearly 95 percent of its value between 2023 and 2024. In Egypt, the figure stands at 50 per cent since 2023. The average fiscal deficit across the continent reached 5.1 percent of GDP in 2024.
“External financing is drying up, but the pressure on government budgets keeps growing,” said Gatete. “We cannot overstate the urgency of domestic resource mobilisation.”
He also warned that Africa’s exposure to global volatility is deepening. Official development assistance dropped to 2.1 per cent of GNI in 2023, down from 3.4 per cent in 2006. Major donors, including the United States, United Kingdom and Germany, have announced further cuts.
At the same time, protectionist policies in developed economies are beginning to impact Africa’s trade. Forthcoming joint research by ECA, the African Union Commission and the African Development Bank suggests that new United States import tariffs could reduce Africa’s exports to the United States by up to 21.5 percent.
“This goes beyond trade volumes,” said Gatete. “It affects industrial jobs, regional supply chains and Africa’s voice in shaping the terms of engagement.”
The session underscored ECA’s support in domestic taxation, debt sustainability, data systems and AfCFTA implementation among others.
MG/as/APA