Africa’s Debt Crisis Spurs Reform Calls and Financial Safety Net

Africa’s escalating debt, surpassing $1.8 trillion, has prompted leaders to propose the African Financing Stability Mechanism (AFSM), modeled after Europe’s stability fund. Angola, chairing the African Union in 2025, is spearheading this initiative to mitigate liquidity crises from external debt repayments, projected at $10 billion annually through 2033. The AFSM aims to refinance debt, with a $3 billion capital base and 20% non-African ownership. Concurrently, African diplomats are urging the UK government to support a bill accelerating debt restructurings, highlighting the urgency of reforming the global financial architecture to alleviate the continent’s debt burden. 

The East African