Africa’s Debt Crisis: $74 Billion Needed for Debt Service in 2024

African countries will need $74 billion to service their debt in 2024, according to African Development Bank (AfDB) Chief Economist Kevin Urama. Speaking at the inaugural Debt Management Forum for Africa in Abuja, Urama revealed that the $70 billion figure marks a significant rise from the $17 billion required in 2010. He stated that $40 billion, or 54%, of the debt service is owed to private creditors. Urama then warned that the actual figure could increase when hidden debts and liabilities are included. High Eurobond yields, climate financing, and unfair sovereign risk perceptions exacerbate the debt crisis, resulting in 20 African nations being at high risk of debt distress. Africa pays an additional $24 billion annually due to the “Africa Risk Premium,” limiting resources for development. Urama called for Africa-led solutions to the debt crisis, emphasizing productive investments and rethinking borrowing models.

SOURCE: NAIRAMETRICS