The African Union has issued a strong warning that Africa’s escalating debt levels are eroding the continent’s ability to invest in its own development. The alert comes as total public debt across African countries reaches an estimated 1.8 trillion dollars, roughly two-thirds of the continent’s GDP.
According to the AU, governments are now spending more on servicing debt than on critical areas such as education, healthcare and infrastructure. In 2024 alone, African states paid more than 70 billion dollars in debt-service costs, squeezing national budgets and limiting economic growth prospects.
Officials say the crisis is being fuelled by high borrowing costs, limited access to affordable financing and external economic shocks. Many states have turned to expensive commercial loans, leaving them vulnerable to global interest-rate movements.
The AU is calling for coordinated action to prevent further deterioration, urging reforms in debt management, greater transparency and a fairer global financial system that reflects the needs of developing economies.
Without decisive measures, the Union warns that rising debt could deepen inequality, slow job creation and undermine long-term development goals across the continent.
