The conference, organized by G20 Presidency South Africa in collaboration with the African Union (AU) at the AU headquarters in the Ethiopian capital of Addis Ababa.
AU Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals Francisca Tatchouop Belobe addressed the event that the resilience of African nations is being tested by an unsustainable debt burden and a financial system that penalizes Africa.
"The rising debt burden is a cause for Africa's financial constraints," Belobe said, highlighting that in 2024 alone, debt service payments exceeded 70 billion U.S. dollars as a significant number of African governments are spending more on servicing debt than on investing in human development.
Noting that Africa's public debt has grown from approximately 100 billion dollars in the 1990s to roughly 1.8 trillion dollars now, or about two-thirds of the continent's GDP, she said the continent's rising costs of public debt servicing are diverting scarce resources.
The AU commissioner said about 57 percent of Africa's population lives in countries where debt servicing surpasses social spending, underscoring that the situation is "unsustainable, not only economically but morally."
"Such iniquities in the global financial system restrained African nations of the means to invest in what truly matters, such as education, healthcare, infrastructure, energy transition, and the green and digital economies that will define the future," Belobe warned.
The AU commissioner called for a partnership that treats Africa "not as a risk to be managed, but as a partner to be empowered." She also outlined AU initiatives, including efforts to establish an African debt monitoring mechanism for fiscal transparency and Africa's financial autonomy.
South Africa's Deputy Minister of International Relations and Cooperation Alvin Botes stressed the urgency of the dialogue to address "one of our foremost priorities â€" ensuring debt sustainability for low-income countries."
He said the policy space available to developing countries is significantly constrained by their debt servicing obligations, with many countries paying more for debt costs than critical development enablers like social welfare, health care, and education.
"We are working to ensure that the sovereign credit ratings are fair and transparent and to address high risk premiums for developing economies," Botes said, adding that South Africa is reviewing the cost of capital during its G20 presidency.
The high-level dialogue served as a critical platform for experts and policymakers to amplify Africa's collective voice within the G20. Participants pushed for fairer global financing, lower cost of capital, and reforms that drive sustainable growth.
Xinhua
