(2 Minutes Read)
Over half of all total debt repayment will go to private creditors. A lot of that is down to the cost of capital. African countries pay more to borrow compared to their richer counterparts. Debt restructuring is also painstakingly slow
Over 20 African countries will spend more on debt service than on healthcare or education in 2025. The picture gets even more complicated given interest rates are not expected to fall sharply.
Over half of all total debt repayment will go to private creditors. A lot of that is down to the cost of capital. African countries pay more to borrow compared to their richer counterparts. Debt restructuring is also painstakingly slow.
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Ethiopia, Ghana, and Zambia have yet to fully conclude relief terms with their creditors. The growing influence of private lenders is a matter of concern for African countries. Debates are taking place on how the IMF can help reduce their debt burdens. Many African leaders are also asking whether South Africa’s G20 presidency presents a chance to tackle the debt crisis.
