-GITFiC Warns
The African continent is now facing a wobbling debt crisis, with total obligations reaching a colossal US$1.215 trillion, according to the Ghana International Trade and Finance Conference (GITFiC).
This frightening figure, GITFiC emphasised, imposes a severe financial strain on many African countries. The mounting debt, which encompasses both public and private sectors, poses massive challenges to the continent’s economic stability and development prospects.
The Chief Executive Officer (CEO) of GITFiC, Mr. Selasi Koffi Ackom, who was speaking in an interview, ahead of the 8th Ghana International Trade and Finance Conference slated for September 6, 2024, made this disclosure.
The GITFiC report draws on data from the World Bank, the International Monetary Fund (IMF), and other financial institutions, stressing the gravity of Africa’s debt situation. Sub-Saharan Africa, in particular, has seen its debt levels swell, with countries like Nigeria, South Africa, and Kenya wrestling with overwhelming external debt.
The report also emphasized that much of this debt is owed to private creditors, including international bondholders, which makes debt restructuring more complex and costly.
Experts have raised concerns about the implications of this debt on Africa’s development. With huge portions of national budgets allocated to debt servicing, many countries are left with limited resources to invest in critical areas such as healthcare, education, and infrastructure. The GITFiC report warns that if the debt situation is not addressed, it could stifle economic growth and deepen poverty across the continent.
GITFiC’s Executive Director, Selasi Koffi Ackom, urged African governments to reassess their borrowing strategies and prioritize sustainable economic policies.
“The current debt levels are unsustainable and threaten the future of our continent,” Ackom stated. He called for a united approach among African nations to negotiate debt relief and explore innovative financing solutions that do not compromise the continent’s economic sovereignty.
