The cumulative sovereign debt of African nations has soared to an unprecedented $1 trillion, as reported by Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa (UNECA). This alarming figure underscores the severe financial challenges faced by the continent.
Gatete highlighted that one-third of African countries with high levels of sovereign debt are currently grappling with significant financial difficulties. The escalating debt burden is exacerbated by a reduction in long-term concessional financing, official development assistance, and direct foreign investments. Additionally, the adverse effects of climate change are taking a heavy toll on Africa, resulting in annual cumulative losses of up to 5% of the continent’s GDP.
The most financially strained countries, according to UN data, include Zimbabwe, Ghana, and Ethiopia. These nations are at the forefront of the debt crisis, struggling to manage their fiscal responsibilities amid dwindling external support and increasing economic pressures.
The situation calls for urgent international attention and innovative solutions to alleviate the debt burden and foster sustainable economic growth in Africa.