BUUMBA CHIMBULU
AS Africa marks Africa Day 2025, Civil Society Organisations (CSOs) from across the continent have renewed calls for the cancellation of unsustainable and illegitimate debts to enable African nations to prioritise development and invest in their people and economies.
The African Forum and Network on Debt and Development (AFRODAD), together with partner organisations from various African countries, commemorated this year’s Africa Day under the theme: “Dignity, Unity, and Justice.”
The observance aligned with the African Union’s 2025 theme, “Justice for Africans and People of African Descent through Reparations.”
During commemorative events, CSOs urged reforms to global financial institutions, accusing them of perpetuating colonial-era debt systems and deepening economic inequalities.
In a joint statement, the organisations voiced support for the establishment of an African Credit Rating Agency, aimed at providing fairer assessments of African economies and reducing the inflated risk premiums imposed by international credit rating agencies.
“We support the establishment of the African Credit Rating Agency to create sustainable solutions for Africa’s access to affordable capital, currently burdened by high-risk premiums placed by international agencies,” the statement read.
The CSOs also championed the development of a United Nations Framework Convention on Sovereign Debt during the upcoming Fourth Financing for Development Conference in Seville, Spain, proposing it as a viable alternative to the existing international financial and debt systems.
While acknowledging Africa’s significant strides in political, economic, health, education, environmental, innovation, and cultural sectors, the organisations emphasised that the fight for genuine debt and economic freedom remained ongoing.
According to AFRODAD, Africa’s total public debt had now surpassed US$1.8 trillion, with at least 34 African countries spending more on external debt repayments than on healthcare and education.
The statement noted that private creditors, often motivated by profit and harsh credit ratings, lend to African nations at significantly higher rates than official creditors — driving debt servicing costs to approximately US$90 billion annually.
“The continent faces a substantial development financing gap, averaging US$200 billion per year, which threatens the successful attainment of both the Sustainable Development Goals (SDGs) by 2030 and Agenda 2063,” the CSOs noted.
They further criticised the global debt and financial system, describing it as one shaped by market liberalism, creditor dominance, and resource extraction — calling for structural reforms to better serve Africa’s development needs.
