African Union says continent's rising debt crisis undermines development
The chairperson of the African Union Commission has warned that the continent’s debt crisis is undermining development.
The chairperson of the African Union Commission has warned that the continent’s debt crisis is undermining development.
Speaking in Ethiopia at a G20-Africa high-level dialogue on debt sustainability, Mahamoud Ali Youssouf, said public debt has grown to about $1.8 trillion.
This represents about two-thirds of the continent’s GDP and is largely due to the high cost of borrowing and limited access to concessional finance.
The chairperson of the African Union Commission has warned that the continent’s debt crisis is undermining development.
Youssouf said that in 2024 alone, debt-service payments exceeded $70 billion, consuming an increasing share of public revenues and eroding fiscal space.
With many governments spending more on servicing debt than on investments in human development, economies and people are suffering.
He said these pressures highlight the need for urgent collective action to restore debt sustainability and improve Africa’s access to capital on fairer terms.
Based on reporting by Africanews.
