President Lazarus Chakwera of Malawi urged the international community to cancel or restructure Africa’s growing debt. Speaking at the 79th UN General Assembly, Chakwera emphasised that debt servicing burdens African nations. He highlighted how these financial obligations prevent countries from addressing critical challenges. Chakwera called for immediate relief to allow Africa to focus on pressing issues.
Africa’s Debt Crisis Deepens
Chakwera stated that Africa is doing its best to manage debt, but restructuring or cancellation would provide relief. He emphasised that the heavy debt burdens are crippling African economies. These financial pressures hinder nations from focusing on development and addressing crises effectively. Chakwera urged immediate debt relief to support Africa’s progress.
The Impact of External Debt on Africa
According to the President of the African Development Bank (AfDB), Akinwumi Adesina, African countries currently spend 65% of their GDP on servicing external debt. This staggering figure underscores the need for urgent debt relief. Adesina echoed Chakwera’s sentiments during a summit in Washington, emphasising the importance of transparency and accountability in loan agreements made by African governments.
African Development Bank Advocates for Debt Transparency
Adesina highlighted the complications caused by opaque loans backed by natural resources, which he believes only worsen the debt crisis. He urged international lenders to stop the practice of offering such loans, which contribute to Africa’s economic struggles and complicate the debt resolution process. He added that addressing this issue would provide long-term benefits to African countries and their global partners.
Africa’s Debt in Numbers
Africa’s external debt rose to $1.152 trillion in 2023, up from $1.12 trillion in 2022, data shows. Malawi’s external debt currently totals $4 billion. Nigeria’s external debt reached $41.59 billion (₦31.98 trillion) by the third quarter of 2023. These figures paint a bleak picture for the future unless the international community intervenes.
The Way Forward for Africa’s Economic Future
Chakwera’s call for debt relief resonates with many African leaders and economists who believe that the continent needs urgent financial breathing space. As global powers convene to discuss economic challenges at international forums, the conversation around African debt is becoming increasingly critical. The hope is that these discussions will result in tangible actions to free Africa from its crippling debt cycle.
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