The Chairperson of the African Union Commission, Mahamoud Ali Youssouf, has sounded the alarm over Africa’s growing debt crisis, warning that mounting repayments are crippling development and deepening economic inequality across the continent. Speaking at a G20–Africa high-level dialogue on debt sustainability in Addis Ababa, Ethiopia, on Tuesday, Youssouf revealed that Africa’s total public debt has surged to around $1.8 trillion, representing roughly two-thirds of the continent’s GDP. He said debt-service payments exceeded $70 billion in 2024 alone, diverting funds from critical sectors such as health, education, and infrastructure. “Many African governments are now spending more on debt repayment than on their people,” he warned, adding that such a trend “erodes fiscal space and stifles growth prospects.”
Experts say much of the debt burden stems from high borrowing costs, currency depreciation, and limited access to concessional financing conditions worsened by global interest rate hikes and declining foreign investment. Youssouf called for “urgent and coordinated international action” to restructure Africa’s debt and create fairer access to capital markets, stressing that sustainable growth will only be possible if countries are freed from the “vicious cycle of borrowing to repay old loans.” The AU Commission is urging the G20, multilateral lenders, and private creditors to adopt a comprehensive debt relief framework, similar to the Heavily Indebted Poor Countries (HIPC) initiative of the early 2000s, but adapted to today’s economic realities. According to the African Development Bank, more than 20 African nations are at high risk of debt distress, with countries such as Ghana, Zambia, and Ethiopia already negotiating restructuring agreements.
