AU warns Africa’s debt crisis is deepening as loan repayments outpace social spending

Africa’s debt is rising at an alarming pace, with many countries now spending more on loan repayments than on essential services such as health and education, the African Union (AU) has warned.

AU Commission Chair Mahmoud Ali Youssouf, through Commissioner Francisca Tatchouop Belobe, issued the warning on Monday during the G20–Africa High-Level Dialogue on Debt Sustainability in Addis Ababa.

The forum brought together senior officials and experts to discuss African-led proposals for structural reforms to the global financial system and to challenge narratives that restrict the continent’s access to fair financing.

According to Mahmoud, African countries spent more than $70 billion (Sh9 trillion) on debt repayments in 2024 alone. He noted that the rising cost of servicing this debt is straining public budgets and limiting investments in human development, even in economies growing at modest rates of 3–4 per cent annually.

“Today, many African governments are spending more on servicing debt than on investing in human development, and approximately 57 per cent of Africa’s population lives in countries where debt servicing surpasses social spending,” the chairperson said.

Urgency of collective action

“These pressures highlight the urgency of collective action to restore debt sustainability and improve Africa’s access to capital on fairer terms.”

The AU chief further noted that Africa’s total public debt has surged from $120 billion (Sh15.5 trillion) in 1990 to nearly $1.8 trillion today—equivalent to roughly two-thirds of the continent’s GDP.

Mahmoud described this trend as unsustainable and criticised the global financial system for relying on outdated and biased measures of creditworthiness, which he said make it harder for African countries to obtain fair funding.

“It is a system built for a world that no longer should exist, one that measures creditworthiness through biased metrics and perpetuates structural inequality,” he said.

The AU chairperson urged the G20, under South Africa’s presidency, to spearhead reforms and establish a fairer global financial system. He highlighted the newly formed Africa Expert Panel as a step toward giving African countries a stronger voice in global economic decision-making.

The panel has been tasked with offering strategic advice on Africa’s collective interests, building a knowledge base of policy lessons, and producing a high-level report with recommendations to the G20 on reforming the global financial architecture and reducing the cost of capital for the continent.

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• African Union
• Africa debt crisis
• G20 debt reforms
• global financial system
• debt sustainability Africa
• Africa public debt repayments
• AU economic reforms
• AU warns Africa’s debt crisis is deepening as loan repayments outpace social spending
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