The African Forum and Network on Debt and Development (AFRODAD) has issued a stark warning about Africa’s escalating debt crisis, revealing that African nations paid a staggering US$163 million in interest on debt service during 2024 alone. This surge in debt servicing costs is largely attributed to soaring interest rates on borrowing, intensifying the continent’s financial challenges.
Speaking at the opening of the 2025 National African Conference on Debt and Development (AfCoDD) held in Lusaka, Catherine Mithia, AFRODAD’s policy analyst and advocacy officer for sovereign debt management, highlighted that Africa’s debt predicament has worsened significantly over the past decade. She pointed out that interest payments on debt are rising faster in Africa than in any other region globally.
“Africa is the only region in the world where debt is growing faster than its GDP,” Mithia explained, underscoring the deep structural flaws in the global financial system that perpetuate cycles of debt and economic dependency for African countries.
As of 2023, Africa’s total debt stock stood at an alarming US$1.8 trillion. Currently, nine countries on the continent are classified as being in debt distress, with 11 more identified as at high risk of distress. Many nations carry debt-to-GDP ratios exceeding 60 percent, while the majority have maintained ratios between 25 and 46 percent from 2013 to 2023.
Mithia further elaborated that rising borrowing costs and restrictive debt restructuring frameworks exacerbate Africa’s financial woes. The debt restructuring processes are often laden with stringent conditions, leaving African nations with minimal leverage to negotiate fairer terms.
She emphasized that the theme of this year’s AfCoDD, “Reparatory justice: Reforming economic systems for sustained and inclusive growth in Zambia,” reflects the urgent need not only to overhaul national fiscal policies but also to transform the global economic architecture that sustains inequality.
Mithia called on African countries to unite in demanding a more equitable financial system—one that champions inclusive growth, economic sovereignty, and sustainable development.
Echoing these concerns, the Civil Society Organisations (CSO) Debt Alliance has urged Zambia to implement bold economic reforms and enhance accountability in its debt management. Daniel Mutale, chairperson of the Alliance, warned that Zambia’s economic future depends heavily on urgent measures to address entrenched injustices and flawed policy decisions.
At the close of 2024, Zambia’s public and publicly guaranteed debt stood at US$25.03 billion, representing 97.24 percent of the country’s GDP. Although this amount shows a nominal decrease from US$31.2 billion in 2023, the rising debt-to-GDP ratio highlights the shrinking national income and growing economic vulnerability.
Mutale cautioned that a 76.5 percent increase in domestic borrowing since 2020 is crowding out private sector investment, hampering economic recovery efforts. He also pointed to a narrow tax base, weak tax administration, and loopholes enabling wealth to escape taxation as major contributors to Zambia’s fiscal challenges.
Describing the CSO Debt Alliance as a critical link between citizens and government, Mutale stressed its role in demystifying debt issues, raising public awareness, and holding leaders accountable for sound debt management.
The warnings from AFRODAD and the CSO Debt Alliance underscore the pressing need for coordinated action at both national and international levels to reform debt systems and foster sustainable economic growth across Africa.