Debt, development, and democracy: Prospects for meeting the SDGs in Africa

Policymakers and politicians are increasingly concerned about the impact of sovereign debt on meeting the Sustainable Development Goals (SDGs) by 2030. In 2023, debt servicing costs and interest payments in low and middle-income countries reached a record high of $1.4 trillion. This diverts much-needed resources for investments in health care, education, and agriculture, all of which are essential for meeting several of the SDGs. In Africa, the concern is particularly acute given that governments’ debt burdens have returned to levels witnessed in the late 1990s when the Heavily Indebted Poor Countries Initiative began. The expansion into Eurobonds and other commercial financing during the 2010s, as well as diversification toward other donors outside the Paris Club of creditors, rising global interest rates, and the COVID-19 pandemic collectively contributed to the region’s re-escalating debt.