The Future of Sovereign Debt Architecture: Priorities for the South African G20 Presidency

This policy note outlines the financial crisis in Africa, where rising public debt—reaching $1.8 trillion in 2022—is hindering climate and development goals. It calls for South Africa to use its 2025 G20 presidency to advocate for a holistic debt architecture that balances creditor obligations with social and environmental commitments.

• African countries face a severe financial crisis characterized by rapidly increasing debt levels that outpace economic growth. The total public debt of African countries reached $1.8 trillion in 2022, representing a 183% increase since 2010, which is roughly four times the growth rate of GDP in dollar terms. Additionally, external debt as a share of exports rose from 74.5% in 2010 to 140% in 2022.
• Debt servicing is severely impacting social spending and the ability to meet development and climate goals. Twenty-three African countries spend more on debt service than on health or education. To meet the Sustainable Development Goals (SDGs), Africa requires $1.3 trillion annually, and an additional $1.3–1.6 trillion per year until 2030 is needed to address climate change impacts.
• Sub-Saharan Africa's external debt stock grew from $425.8 billion in 2012 to $815.7 billion in 2021. Of the 2021 total, approximately $1,460 billion was owed to bondholders, $60 billion to commercial banks, and $150 billion to multilateral institutions.

APA

South African Institute of International Affairs (2024). The Future of Sovereign Debt Architecture: Priorities for the South African G20 Presidency. https://saiia.org.za/research/the-future-of-sovereign-debt-architecture-priorities-for-the-south-african-g20-presidency/

Chicago

South African Institute of International Affairs. The Future of Sovereign Debt Architecture: Priorities for the South African G20 Presidency. 2024. https://saiia.org.za/research/the-future-of-sovereign-debt-architecture-priorities-for-the-south-african-g20-presidency/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=The Future of Sovereign Debt Architecture: Priorities for the South African G20 Presidency |date=5 December 2024 |url=https://saiia.org.za/research/the-future-of-sovereign-debt-architecture-priorities-for-the-south-african-g20-presidency/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2024future, author = {{South African Institute of International Affairs}}, title = {{The Future of Sovereign Debt Architecture: Priorities for the South African G20 Presidency}}, institution = {South African Institute of International Affairs}, year = {2024}, month = dec, url = {https://saiia.org.za/research/the-future-of-sovereign-debt-architecture-priorities-for-the-south-african-g20-presidency/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }