As we rapidly approach the year 2030, the urgency for Africa to accelerate its development efforts has never been greater. With less than seven years remaining to achieve the Sustainable Development Goals (SDGs), the continent stands at a critical juncture. The clock is ticking, and the need for swift, scalable action has become increasingly imperative.
Central to this discussion are Africas significant economic challenges, including unrelenting debt, financial instability, and the looming threat of climate change. Since 2010, Africa has witnessed a staggering 180% increase in debt levels, with public debt now constituting 66% of the continents Gross Domestic Product (GDP). The high costs associated with debt repayment are severely impacting vital expenditures in health, education and climate action.
This financial strain was highlighted during the March 2024 Conference of Ministers of Finance, Planning, and Economic Development, where African leaders expressed their dissatisfaction with the global financial architecture, calling for alternative solutions better suited to the continents unique needs.
Despite a projected GDP growth of 3.5% in 2024 a modest increase from 2.8% in 2023 such growth remains insufficient to meet the ambitious goals outlined in Africas Agenda 2063. The continent is grappling with complex global shocks that have disrupted supply chains, reduced access to finance, and eroded fiscal space. Alarmingly, 21 African nations are at high risk of, or already experiencing, debt distress, with only two countries maintaining investment-grade credit ratings.
Moreover, the fiscal landscape is further complicated by a stagnant tax-to-GDP ratio of 15.8% and an inflation rate that surged to 18.3% in 2023.
