Over the past few decades, African countries have faced a persistent and escalating debt crisis. External debt service payments have surged dramatically, reaching an estimated $163 billion in 2024, a significant increase from $61 billion in 2010. The debt burden has led to defaults in several countries, including Zambia, Ghana, and Ethiopia, while others like Kenya, Angola, and Mozambique remain under significant debt stress.[1] The consequences of this debt crisis extend beyond economic instability, profoundly impacting socio-economic development and progress towards the Sustainable Development Goals (SDGs).
In 2015, the United Nations adopted the Sustainable Development Goals (SDGs), a global agenda to address pressing global challenges and promote inclusive, sustainable development. For African countries, the SDGs represent a critical framework for achieving economic growth, reducing poverty, enhancing education and healthcare, and addressing environmental sustainability. The 17 SDGs and their 169 targets provide a comprehensive blueprint for development that aligns with Africa’s aspirations for economic and social advancement. However, the continent faces a significant obstacle: the burden of external debt. Many African countries allocate more resources to debt repayment than to SDG implementation. This diversion of funds hampers progress towards key development goals. With just six years remaining until the 2030 deadline, Africa will unlikely meet most of these ambitious targets. Of the 144 measurable SDG targets, the continent is on track to achieve only ten by 2030.
This edition of the Nextier Policy Weekly explores the intricate relationship between the ongoing debt crisis in Africa and progress towards the SDGs. It seeks to understand how the debt burden impacts the ability of African countries to achieve key development goals and to identify the potential pathways through which debt management strategies can be aligned with sustainable development objectives.
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