A growing uprising is sweeping across Africa, where 70 percent of the population are young people under 30, unhappy with their living conditions. This rising frustration among Africa’s youth is driving them to the streets to demand better governance amid a cost-of-living crisis. In Nigeria, young people have been protesting nationwide since August 1, inspired by youth-led movements that challenged the Kenyan government and triggered intense crackdowns in Uganda. Similarly, a youth-led protest in Ghana against the cost of living was quelled by a high court some days ago.
This widespread frustration reflects a deeper issue, as people across the continent in increasing numbers realize that the current economic system benefits a small group of wealthy elites while leaving the majority struggling. Jason Rosario, a Kenyan economist and Executive Director of the African Forum and Network on Debt and Development (AFRODAD), stressed on this growing discontent during a recent online press conference.
Mr. Rosario criticized the existing global economic framework, stating that it favours wealthy countries and multinational corporations that extract significant wealth from Africa, leaving the continent in a perpetual state of financial dependency. “Our economic ecosystem benefits a handful of wealthy countries and corporations that siphon billions from the continent annually,” he said.
The Economist explained that African governments are trapped in a cycle of borrowing due to fiscal gaps caused by trade deficits, illicit financial flows, and ineffective taxation policies. This dependency on foreign direct investment to plug these gaps often results in heavy borrowing for government operations rather than developmental projects. “Our inability to trade high-value goods or move up the manufacturing value chain creates gaps we fill through foreign direct investment, leading to heavy borrowing for government operations instead of development, perpetuating debt dependency,” he added.
Mr. Rosario called for a comprehensive overhaul of the global economic system to ensure it is fairer and more just. He advocated for a level playing field where borrowing countries, particularly in Africa, have a stronger voice at the negotiating table. He also stressed on the need for a transparent negotiation process under the United Nations’ auspices, allowing developing countries to negotiate debt restructuring in a coordinated and equitable manner.
