Public debt is mounting and budgetary margins are shrinking. Faced with a crisis that threatens the future of several countries on the continent, experts, political leaders and financial institutions met in Lomé to consider practical solutions. How can debt sustainability be restored without sacrificing essential social spending? What mechanisms are needed to structure borrowing more effectively and strengthen economic sovereignty?
Public debt in Africa is now reaching worrying levels. According to the International Debt Report published in 2024 by the World Bank, 22 African countries are over-indebted or exposed to high risk. In 2023, the cumulative public debt of sub-Saharan Africa exceeded the 1,100 billion dollar mark, or more than 60% of regional GDP. A large proportion of this debt is contracted with private or bilateral creditors, with high interest rates and strict conditions. This fragility is not the result of a single factor, but of a chain of structural and cyclical vulnerabilities.
“Many have had these funds, but have not been able to use them effectively. But ultimately, when you go to these countries, there is no infrastructure, there is no road infrastructure, there is no energy, there is nothing.”
“Many have had these funds, but have not been able to use them effectively. But ultimately, when you go to these countries, there is no infrastructure, there is no road infrastructure, there is no energy, there is nothing.”
Emmanuel Innocents EDOUN, Professor in economics – South Africa
In several sub-Saharan African countries, debt servicing absorbs colossal resources. According to the International Monetary Fund (IMF), by 2023 Ghana will be devoting more than 45% of its public revenue to debt servicing, or around 6.2 billion dollars a year. In Ethiopia, debt repayments amount to almost 3.5 billion dollars, while the combined health and education budget is barely 2.7 billion. More generally, in 14 African countries, the amounts paid to creditors exceed basic social budgets.
“Public debt, the sustainability of debt, is the cause of this problem. In some cases, the debt has exceeded the repayment of health and education, which is critical for the development of any country. Health and education are very important for young people. We need to make sure that investment in public debt is focused particularly on education, to ensure that our young people are ready and able to work for the future”.
Délia COX, Public Debt Adviser, Commonwealth Secretariat – United Kingdom
Faced with the urgency of debt, the Lomé conference put forward concrete solutions. The experts called for a strengthening of African development banks, such as the AfDB, which granted almost $8 billion in 2023 on favourable terms. Among the instruments mentioned were green bonds (more than $3 billion raised in 2023), loans linked to the SDGs, and debt-for-nature swaps, as in the case of the Seychelles, where $27 million was redirected towards marine protection. But without transparent and rigorous governance, these tools remain insufficient.
“If the terms and conditions of repayment do not damage the country, that’s fine. If the resources are not destroyed and end up in people’s pockets through corruption, that’s fine. The important thing is that each country has its own capacity.”
Éric OGUNLEYE, Director of the African Development Institute of the AfDB Group – Nigeria
Debt is not inevitable. If it is properly contracted and channelled into productive investment, it can become a real lever for growth.
