By BUUMBA CHIMBULU in Johannesburg
AFRICA is facing one of its worst sovereign debt crisis that threatens to reverse years of growth gains with some countries, already in debt distress such as Zambia and Ghana, resorting to implement harsh policies to cushion the drain.
For example, Zambia’s central government external debt stock, as at end December 2024 was at US$15.43 billion from US$14.6 billion recorded as at end December 2023.
It is one of the African countries which have implemented harsh policies such as the removal of fuel subsidies following the implementation of a US$1.3 billion International Monetary Policy (IMF) programme.
Currently, more than half of African countries are in debt distress with Zambia, Ghana, and Ethiopia restructuring their burden.
The on-going Fifth Edition of the AFRODAD Media Initiative taking place in South Africa yesterday heard that the continent was facing one of its worst sovereign debt.
The initiative is focusing on the media’s role in Advancing Africa’s Position on Reparative Justice.
Member of AFRODAD’s Board of Trustees, Christian Ayiku, in his opening speech highlighted that Africa was facing one of its worst sovereign debt crises that threatened to reverse years of development gains and historical debt relief efforts.
From the African Debt Risk Map, Sudan, Somaliland, Somalia, Ghana, Sao Tome and Principe, Congo Republic, Zambia, Mozambique, Malawi, Zimbabwe, Cameroon, Angola, Central African Republic, South Sudan, Ethiopia, Chad, Eritrea, Djibouti, Gambia, Guinea-Bissau, Sierra Leone, Tunisia and Kenya are struggling from a heavy burden of debt.
“Some countries have been pushed to implement harsh policies and budget cuts from social investment to loan repayment, leading to unrest as countries are forced into positions of implementing deeply unfair and unpopular policies, sometimes leading to civil unrest as witnessed in Kenya and Nigeria in 2024,” Dr Ayiku said.
He pointed out that while public debt was an essential component of modern fiscal policy worldwide, it presented unique complexities within African economies.
He explained that its genesis was intimately tied to the colonial legacy left by European powers, which had contributed to the accumulation of odious debt and the transfer of oppressive debt burdens to independent African nations, constricting their fiscal spaces.
On the workshop, Dr Ayiku said AFRODAD had been working with the media to set public debt and linked issues on the agenda as a priority.
He explained that this had also played a key role in democratising the debt discourse, thus giving citizens the power to influence debt policy through electoral choices.
“The media plays a crucial role in shaping public discourse, influencing policy decisions and bringing attention to socio-economic issues. Therefore, empowering journalists to set an agenda that aims at ensuring accountability and keeping people informed on key processes remains crucial,” he said.
Speaking earlier, AFRODAD Executive Director Jason Rosario Braganza, underscored that more than half of the continent’s countries were in debt distress.
Mr Braganza highlighted that close to half the continent’s countries were paying more in debt service interest repayments than on investments in public services such as education, health, water, and sanitation.
“Despite these very grave economic challenges, the role of media in reporting these challenges and the diversion of much-needed resources to debt servicing is largely going unreported.
“Lack of information accompanied by inaccessible debt statistics and public reporting is undermining the public’s ability to interact and play its role in holding government to account,” Mr Braganza added.
