DEBT JUSTICE NOW.
The debt crisis in Africa is out of control. It is decimating already low government budgets, driving severe cuts in essential public services and has even led to riots.
In 2024, Sub-Saharan African governments spent $2.4 billion a week, $300 million a day, on debt servicing payments. African countries now spend more on debt than on education and 25 million more African children are out of school since 2012.
Although 97% of people living in a country defined as in “debt distress” are African, the current global debt crisis was mainly caused by factors outside Africa.
Ending the debt slavery entrapping much of Africa is urgent, possible and affordable. The only question is how many will suffer, and for how long, before it happens?
LEARN MORE ABOUT DEBT JUSTICE:
DEBT CANCELLATION
With debt repayments increasing to such extortionate and unsustainable levels, it will have to be cancelled.
This is possible if high-income governments use their disproportionate power in the global system to support an emergency issue of IMF Special Drawing Rights, ringfenced to rectify the discriminatory allocation in 2021.
This would provide enough financing to cancel all the low-income country debt and 10% of lower middle-income debt in Africa.
Learn more about SDRs and how the discriminatory allocation by the IMF in 2021 helped during COVID-19 helped cause today’s debt crisis here.
A SOVEREIGN DEBT DEFAULT MECHANISM
As well as cancellation, reform to the debt system must be made to prevent future crises.
High-income governments should support the African Leaders Debt Initiative and must agree to create a Sovereign Default Mechanism that gives countries the same protection as corporations, as well as new rules to ensure debt is only enforceable on future generations if it was borrowed in a transparent and democratic manner.
To be effective, critical reform is also needed at the IMF, World Bank and G20. Find out more here.
STRONGER AFRICAN LEADERSHIP
Africa has much more negotiating power when it works together.
African governments must act in unity and develop a common position on debt, as we have seen with the UN Tax Convention, to increase the chance of success in international negotiations and securing backing from other countries.
Learn more about the possibilities for debt justice if African governments work together, including in rejecting unjust debt and not ceding control to the IMF here.
OUR DEMANDS
WHY IS DEBT JUSTICE IMPORTANT TO AFRICA?
How much debt does Africa owe? How does this compare to other regions? What is the impact on African citizens?
HOW DID THE DEBT CRISIS DEVELOP?
What caused the debt crisis? Why did it hit Africa the hardest? What role did rich countries play?
WHY IS THE DEBT CRISIS GETTING WORSE?
Why hasn't the debt crisis been solved like previous ones? Who is to blame for this inaction and why?
WHAT CAN BE DONE?
How can the debt crisis end? Who needs to act? How do we build hope and create change?
