UN Deputy Secretary-General Warns of Africa's Soaring Debt Crisis

Amina Mohammed, the UN Deputy Secretary-General, has raised the alarm about Africa's escalating debt crisis during the opening of the African Regional Forum on Sustainable Development in Addis Ababa, Ethiopia. Mohammed reported that Africa's debt has skyrocketed by 183% since 2010, quadrupling the region's growth rate and hindering economic progress and sustainable development investment.

According to Mohammed, debt service represented 47.5% of government revenues in sub-Saharan Africa last year, becoming the primary expenditure for many countries in the region. "Africa's debt has risen by 183% since 2010, quadrupling the region's growth rate," she stated, emphasizing the urgent need for action to address this debt crisis and ensure sustainable development in Africa.

Despite being halfway through the implementation of the Sustainable Development Goals (SDGs), most SDGs are off track in Africa, either progressing too slowly or regressing below the 2015 baseline. Mohammed highlighted the need for strategic interventions that utilize Africa's vast natural and renewable resources, which are critical for transitioning to green economies. Currently, these resources account for only 2% of global investment in renewable energy.

Why this matters: The soaring debt crisis in Africa threatens to derail the continent's progress towards sustainable development and economic growth. Addressing this issue is crucial for ensuring a more prosperous and equitable future for Africa's population.

The 10th Africa Regional Forum on Sustainable Development offered African leaders a platform to advocate for a fairer global financial system, increased investment, and debt relief. Mohammed called for urgent action to increase capital flows into developing countries, particularly in Africa, stating that at least $500 billion a year is needed to scale up affordable long-term financing for development, alongside structural reforms within the international financial architecture.

The Prime Minister of Uganda, Robinah Nabbanja, stressed the need for reform of the global financial architecture to ensure favorable financing terms and long-term financing for developing countries. Claver Gatete, the Executive Secretary of the Economic Commission for Africa (ECA), highlighted the importance of innovative financing mechanisms and reforms in the global financial architecture to unlock new avenues for sustainable investment and inclusive growth in Africa.

Key Takeaways

• Africa's debt has surged 183% since 2010, hindering sustainable development.
• Debt service is 47.5% of government revenues in sub-Saharan Africa.
• Most SDGs are off track in Africa, requiring strategic interventions.
• Africa needs $500B/year in affordable long-term financing for development.
• Reforms to the global financial architecture are crucial for sustainable investment.