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:
- What is the G20?
- International taxation
- Food security
- Fossil phase out
- Climate financing
- Green industrialisation
- Universal social floors
- Women empowerment