Africa's Path

‘…must recover a sense of ambition. To dream again. This time very boldly’ (The Economist)

The continent of Africa is once again at the crossroads. The continent’s economies are either experiencing slow growth or stagnating. It was envisaged that for Africa to catch up with the rest of the world, it would have to go through consistent double-digit growth for at least a decade. Instead, the debt-to-GDP ratio in Sub-Saharan Africa has doubled over the past 15 years. Since COVID-19, the average growth has been sitting at less than 7% for most countries. Africa is the only region where its debt is growing faster than its Gross Domestic Product (GDP). The debt has increased by 183% since 2010, a rate roughly four times higher than its growth rate of GDP in dollar terms (United Nations Conference on Trade and Development (UNCTAD), 2023). The public debt currently stands at US$1.8 trillion. Furthermore, in 2022, there were 27 countries in Africa with a ratio of debt to GDP above 60%, a level seen as a threshold for sustainability, compared to the year before the pandemic, when 18 countries had debt levels above that threshold.

Recent foreign policy changes amongst several Global North countries with regard to the levels of Official Development Assistance have created new and urgent challenges for Africa. The funding landscape challenges us to think through new ways of funding the development agenda across the continent. Whilst the cuts to funding are seemingly abrupt, they have been under consideration for a longer time outside of President Trump’s shock and awe approach. For instance, the USAID funding freeze and subsequent withdrawal have resulted in a $12 billion shortfall in Africa's healthcare financing (Sahlu, 2025). How will Africa survive in the post-aid era, where the new consensus is around leveraging trade approaches? The current challenges in Africa present both a crisis and an opportunity for transformative change. As traditional development funding sources have become less reliable, there is an urgent need for African countries to prioritise domestic resource mobilisation and press the reset button on the business-as-usual approach. Meaningful reforms will require high-level leadership and a coordinated effort from governments, regional institutions, and the private sector.

Read the full article: click here

------------------------

If you’ve found value in our insights, consider helping us keep them coming. Support us with a gift of $50 or more, and be part of sustaining this vital work. Together, we can ensure that data and analysis remain tools for transformation. PARTNER WITH US