The Changing Nature of Debt in Africa

The document argues that Africa's rising public debt is unsustainable and that current global relief mechanisms, such as the G20 DSSI and the Common Framework, are insufficient. It highlights a shift toward private and non-traditional lenders, which has increased borrowing costs and reduced investment in social services and climate resilience, necessitating a fundamental overhaul of the global financial system.

• African countries are experiencing unsustainable debt levels despite previous large-scale relief efforts, suggesting that the current global financial architecture cannot effectively resolve liquidity and solvency issues in developing nations.
• A change in the composition of debt, specifically a move toward non-traditional lenders and private creditors, has raised borrowing costs and diverted funds away from climate resilience and social services.
• Existing global debt relief tools, specifically the Common Framework and the G20 Debt Service Suspension Initiative (DSSI), have failed to adequately address the long-term debt challenges facing Africa.

APA

Owusu-Baafi, S. (2024). The Changing Nature of Debt in Africa. African Center for Economic Transformation. https://acetforafrica.org/research-and-analysis/insights-ideas/the-changing-nature-of-debt-in-africa/

Chicago

Owusu-Baafi, Samuel. The Changing Nature of Debt in Africa. African Center for Economic Transformation, 2024. https://acetforafrica.org/research-and-analysis/insights-ideas/the-changing-nature-of-debt-in-africa/.

Wikipedia

{{cite report |last1=Owusu-Baafi |first1=Samuel |title=The Changing Nature of Debt in Africa |publisher=African Center for Economic Transformation |date=19 November 2024 |url=https://acetforafrica.org/research-and-analysis/insights-ideas/the-changing-nature-of-debt-in-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{owusubaafi2024changing, author = {Owusu-Baafi, Samuel}, title = {{The Changing Nature of Debt in Africa}}, institution = {African Center for Economic Transformation}, year = {2024}, month = nov, url = {https://acetforafrica.org/research-and-analysis/insights-ideas/the-changing-nature-of-debt-in-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }