Africa debt service to hit $163 billion in 2024 – Irish President

President Michael Higgins of Ireland, says Africa is likely to pay $163 billion in 2024 in debt service, up from $61 billion recorded in 2010. This is 167.2 percentage increase.

A statement by the African Development Bank (AfDB) quoted Higgins as saying this during the 2024 Kofi Annan Eminent Speakers Lecture, in Abidjan, Côte d’Ivoire.

“Debt service exceeds social spending by two-thirds in Africa and low-income countries as a result of the debt crisis, children are starving, the planet is burning, and extreme poverty is rising,’’ he said.

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He emphasised the urgent need for global collaboration to tackle the intertwined crises of climate change, mounting debt, and food insecurity in Africa.

“The Global North is responsible for 92 per cent of overshoot emissions that is the damage caused by climate breakdown. Global south renewable energy is receiving 40 times less public finance than the fossil fuel sector,” he said.

The Ireland president also pointed to the severe shortfall in climate finance for affected countries, saying that current contributions from the global North for climate-hit countries remains grossly insufficient.

On food insecurity, Higgins said half of the world’s over eight billion population are defined as malnourished with more than one billion people in Africa struggling to afford a healthy diet.

According to him, conflict has become the main driver of food insecurity, affecting 135 million people across 20 territories.

Higgins called for comprehensive systemic reform, arguing that, “current debt relief frameworks are simply not working.”

He proposed a capping debt service at 15 per cent of revenue for countries outside capital markets.

He said this move could potentially save sub-Saharan Africa at least 97 billion dollars annually for vital social and environmental programmes.

The AfDB President, Akinwumi Adesina commended Higgins for his longstanding commitment to Africa’s development, noting his work in Africa spanning over 50 years.

Adesina also restated Ireland’s 35 million Euro pledge to the African Development Fund’s 16th replenishment and six million Euro contribution to climate adaptation through the African Climate Change Fund.

“Ireland officially joined the AfDB Group as the 81st shareholder in April 2020 and has proven to be a committed supporter of Africa,” Adesina stated.

The AfDB president while speaking on the lecture, said :”through this platform we honour the memory of the late former United Nations Secretary-General, Kofi Annan.

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“His depth of understanding on international issues, from multilateralism in fostering development to supporting African smallholder farmers to anchor the continent’s food security, remains an inspiration to millions.”

He said African smallholder farmers could compete effectively globally when properly supported, and recalled the case of Malawi that transformed from food aid recipient to exporter after implementing extensive farmer support programmes.

“The export of primary commodities in their raw form is the door to poverty, and value addition is the gateway highway to wealth,” Adesina said.

Similarly, Kevin Urama, the Bank’s Chief Economist and Vice president for Economic Governance and Knowledge Management reiterated the importance of these discussions in shaping Africa’s development strategies.

“As we find ourselves at the midpoint towards achieving sustainable development in Africa, we must continue innovating, collaborating, and pushing boundaries to find solutions that empower future generations,” he said.

The News Agency of Nigeria (NAN) reports that since its inception in 2006, the Kofi Annan Eminent Speakers’ Lecture Series has featured prominent global leaders.

Among them are former presidents Kenneth Kaunda of Zambia, John Kufuor of Ghana, and Festus Mogae of Botswana, alongside Nobel Laureates such as Leymah Gbowee, Wangari Maathai, Joseph Stiglitz, and Esther Duflo.