As Africa welcomes a new year, its leaders are faced with a daunting challenge: navigating the continent’s escalating debt crisis. With public debt ratios soaring to alarming levels, averaging almost 60% of GDP by the end of 2022, the risk of a full-blown debt crisis looms large. The COVID-19 pandemic has only exacerbated the situation, with African countries spending a staggering $58 billion on debt repayments in 2020 alone .

In response, African presidents are scrambling to find solutions. Some are advocating for a global response, akin to the debt relief initiatives of the early 2000s, to help alleviate the burden. Others are exploring innovative approaches, such as mobilizing domestic revenue and strengthening budget institutions, to improve debt management and prevent future crises.

As the continent’s leaders make moves to address this pressing issue, all eyes are on the likes of the G20, the IMF, and the World Bank to provide support and guidance. With the right strategies and international cooperation, Africa can navigate this debt crisis and emerge stronger, more resilient, and poised for sustainable growth.