A recent protest in Accra, the capital of Ghana, has drawn attention to a problem Africa can’t seem to escape — the spiral of public debt that continues to consume the very resources needed for countries to free themselves… from debt.
How can a protest in Accra, Ghana’s coastal capital in West Africa, have anything to do with Mozambique? When the issue is sovereign debt, the connection is obvious. In fact, the demonstration, which brought together hundreds of people at the end of August, concerns not only Mozambique but many other countries as well.
According to the Agence France-Presse (AFP), protesters wore red and black T-shirts and carried placards reading “We owe nothing, we won’t pay,” “Africa can’t breathe,” and “Economic reform is a scam.”
Africa: Debt servicing costs are estimated to have reached 163 billion dollars, 12% more than the previous year, says UNECA.
The demonstrators demanded the cancellation of the country’s debt, gaining the support of the Minister of Finance. Ghana, the largest gold producer and second-largest cocoa exporter in Africa, faced a financial crisis in 2022 from which it is only now beginning to recover, after defaulting on its debt and registering 50% inflation. The situation was so severe that President Nana Akufo-Addo was forced to request a €2.5 billion financial adjustment program from the International Monetary Fund (IMF).
After receiving a petition calling for debt cancellation, Finance Minister Cassiel Ato Forson acknowledged the scale of the problem — which amounts to €1.1 trillion across the continent.
“There is a difference between not being able to pay and not wanting to pay,” Forson told the demonstrators.
UNECA Warns of Perpetuating the Debt Cycle
In its most recent report on Africa, published in late March, the United Nations Economic Commission for Africa (UNECA) stated that one of the continent’s biggest challenges is the high level of public debt, which limits investment in infrastructure essential for economic development.
Public debt in Africa is expected to fall from 62.5% last year to 62.1% this year, after reaching 67.3% in 2023, but this decline is insufficient to eliminate the debt crisis affecting many countries, according to the UN.
UN warns: even with fiscal stability, Africa will face high debt repayments in 2025, limiting resources available for essential social and economic investments.
“Despite the slight drop, debt levels remain high and comparable to those recorded before the debt-relief initiatives of the mid-2000s,” reads the Economic Report on Africa (ERA), released following the conference of African finance ministers held in Addis Ababa, Ethiopia, in March.
The UN experts note that fiscal policy is returning to normal, but warn of significant debt repayments this year, with current financial constraints forcing countries to cut essential public spending and divert resources to debt servicing — thereby perpetuating the debt cycle.
How Much Does It Cost to Service the Debt?
According to UNECA, debt-servicing costs are estimated to have reached USD 163 billion, 12% higher than the previous year. Although 2024 marked the peak year for repayments, the report notes that “figures will remain well above pre-COVID-19 levels in the short and medium term.”
The institution further warns that “vulnerabilities remain high,” reflected in high interest rates, fiscal volatility, accumulated payment arrears, and the prolonged impact of external shocks.
North Africa leads in debt-to-GDP ratios, at 76%, followed by Southern Africa—home to Angola and Mozambique—at 70.7%, while East Africa remains the least indebted region, with public debt at 39.2% of GDP.
Text: Editorial Team • Photo: D.R.
