UN Secretary-General Antonio Guterres warned that Africa’s limited access to debt relief and resources could lead to social unrest. He proposed reforms to the global financial system. A growing debt crisis has fueled recent protests in Kenya, Nigeria, and Uganda. People are protesting against tax hikes and the high cost of living.
African countries have tried to restructure their debts through the G20’s ‘Common Framework.’ However, the process has been slow, involving complex negotiations. Zambia restructured its debt in June, three years after defaulting. Guterres called Africa’s debt situation “unsustainable” and a cause for concern.
He pointed out that African nations lack effective debt relief and face resource shortages. They also receive insufficient funding to meet basic needs. Guterres urged for “deep reforms” to the financial system and suggested additional stimulus for developing countries.
At the ninth Forum on China-Africa Cooperation Summit, China pledged 360 billion yuan ($50.70 billion) in new financing for Africa over the next three years. Last year, China approved $4.61 billion in loans to Africa, marking the first increase since 2016. Angola’s finance minister mentioned ongoing talks with Beijing and others to secure funds to reduce inflation and support public-private partnerships.
