The debate about the African debt crisis overlooks the real human costs. Hiding behind the billions owed are the lived experiences of many Africans: workers skipping meals just to afford bus fare, graduates sitting idle without jobs, and nurses treating patients without access to medicine. Meanwhile, governments are forced to pay high debt costs that divert fiscal resources from public health, education, and industrial policy, thereby hindering job creation and economic growth. This debt crisis extends beyond poor governance and is rooted in a rigged global system built on neo-colonialism, which limits African governments’ abilities to source funds for debt accumulation and forces poor nations to prioritise paying creditors over caring for their people.
As the G20 convenes for the first time in Africa, are G20 governments finally willing to address the debt distress facing many countries on the continent? Will South Africa’s proposed African Expert Panel bring about recommendations that will provide a glimmer of hope?
Governments borrow to bridge the gap
Governments exist to serve their people; they build roads and schools, fund hospitals and defence, and respond to crises. This requires a constant flow of money, with taxes, fees, and resource royalties being the primary sources of revenue. This forms the basis of the social contract. However, sometimes urgent needs arise more quickly than the government can collect revenue to address them. A critical bridge fails. A pandemic strikes. An ageing power grid threatens to collapse. A war breaks out, which increases the cost of food. Essential services cannot wait until next year’s taxes arrive. Halting them would not be an option.
This is where borrowing comes in. It is a standard tool used by governments worldwide when current expenses outpace current income. Responsible borrowing acts as a bridge. It allows a government to provide vital services now and invest in crucial projects today, repaying the debt later from future revenue. Used wisely, it secures inclusive growth and sustainable development, enabling the nation to continue running and building through temporary shortfalls, ensuring stability and progress.
Africa’s crushing burden
Africa has a long and painful history with debt, which began in the 1980s, primarily due to inherited colonial debts, oil shocks, rising poverty levels, and political instability. Over time, Africa and the developing world have incurred high levels of debt. Currently, Africa collectively owes around $746 billion, which is significantly less than the other regions of the world.
Learn more
Explore the full findings and recommendations in the IEJ’s G20 African Debt Crisis Factsheet.
Other factsheets in the 2025 G20 series include:
Amaarah is a Junior Programme Officer in the Rethinking Economics for Africa project. She is currently studying towards her Masters in Applied Development Economics at Wits University. 
Dr James Musonda is the Senior Researcher on the Just Energy Transition at the IEJ. He is also the Principal Investigator for the Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods project, covering South Africa, Ghana, and Kenya.
Dr Basani Baloyi is a Co-Programme Director at the IEJ. She is a feminist, development economist and activist. She gained her research experience while working on industrial policy issues in academia, at the Centre For Competition, Regulation and Economic Development (CCRED) and Corporate Strategy and Industrial Development (CSID) Unit.
Dr Andrew Bennie is Senior Researcher in Climate Policy and Food Systems at the IEJ. He has extensive background in academic and civil society research, organising, and activism. Andrew has an MA in Development and Environmental Sociology, and a PhD in Sociology on food politics, the agrarian question, and collective action in South Africa, both from the University of the Witwatersrand.
Juhi holds a Bachelor of Arts degree in International Relations and Sociology from Wits University and an Honours degree in Development Studies from the University of Cape Town. Her current research focus is on social care regimes in the South African context, with a particular focus on state responses to Early Childhood Development and Long-Term Care for older persons during the COVID-19 pandemic. Her other research areas include feminist economics, worlds of work and the care economy.
Bandile Ngidi is the Programme Officer for Rethinking Economics for Africa. Bandile has previously worked at the National Minimum Wage Research Initiative and Oxfam South Africa. He holds a Masters in Development Theory and Policy from Wits University. He joined the IEJ in August 2018. Bandile is currently working on incubating the Rethinking Economics for Africa movement (working with students, academics and broader civil society). 
Liso Mdutyana has a BCom in Philosophy and Economics, an Honours in Applied Development Economics, and a Masters in Applied Development Economics from Wits University. His areas of interest include political economy, labour markets, technology and work, and industrial policy. Through his work Liso aims to show the possibility and necessity of economic development that prioritises human wellbeing for everyone.
Joan Stott holds a Bachelor of Business Science in Economics and a Master’s in Economics from Rhodes University. She brings to the IEJ a wealth of experience in public finance management, policy development, institutional capacity-building, and advancing socioeconomic and fiscal justice.
Siyanda Baduza is a Junior Basic Income Researcher at IEJ. He holds a BSc in Economics and Mathematics, an Honours degree in Applied Development Economics, and is currently completing a Master’s degree in Applied Development Economics at the University of the Witwatersrand. Siyanda’s research focuses on the impacts of social grants on wellbeing, with a particular focus on the gendered dynamics of this impact. His interests include applied micro-economics, policy impact evaluation, labour markets, gender economics, and political economy. He is passionate about translating economic research into impactful policy.
Shikwane is a Junior Programme Officer at IEJ focusing on civil society support and global governance in the G20. He has a background in legal compliance, IT contracting and student activism. He holds degrees in Political Studies and International Relations, as well as an LLB, from the University of the Witwatersrand.
Dr Tsega is a Senior Researcher focusing on Women’s Economic Empowerment within the G20. She examines gender equity in economic policy, with expertise in food systems and small enterprise development. She holds a PhD in development studies from the University of the Western Cape, an MA in Development Economics, and degrees in Development Studies and Economics from UNISA and Addis Ababa University.
Nerissa is a G20 Junior Researcher at IEJ, focusing on advancing civil society priorities within the G20 framework. She bridges data, research, and policy to advance inclusive economic frameworks. She is completing a Master’s in Data Science (e-Science) at the University of the Witwatersrand, and holds Honours and Bachelor’s Degrees in International Relations with distinction. She has worked as a Research Fellow at SAIIA and a Visiting Research Fellow at Ipea in Brazil.
Dr Mzwanele is a Senior Researcher supporting South Africa’s G20 Sherpa with policy research. He holds a PhD in Economics from the University of Birmingham and an MSc from the University of the Witwatersrand. His work covers open macroeconomics, trade, finance, and higher education policy, and he has published widely on inequality, unemployment, household debt and higher education curriculum reform.
Kamal is the Project Lead for IEJ’s G20 work, focusing on sovereign debt and development finance. He holds a BComm (Hons) in Applied Development Economics from the University of the Witwatersrand and an Erasmus Mundus Joint Masters in Economic Policies for the Global Transition. He has worked with SCIS, UNCTAD and co-founded Rethinking Economics for Africa.