Cancel Africa’s Debt: A Moral Imperative for Global Economic Justice
ActionAid remains optimistic about achieving significant progress on these issues at the upcoming 4th Financing for Development Conference in June 2025.
ADDIS ABABA, ETHIOPIA — ActionAid has made a compelling call for the cancellation of Africa's debts, characterizing it as a moral imperative for achieving global economic justice, writes Martha Nakhate Phonera.
This assertion follows the release of a report titled “Who Owes Who” on February 7, 2025, during the 41st Gimac pre-summit CSOs consultative meeting. Wangani Kinoti, the Global Women’s Rights and Feminist Alternatives lead at ActionAid International, presented the findings.
The report underscores that many African countries are burdened by debt resulting from an unjust global economic system and exorbitant interest rates on loans.
Kinoti pointed out that rich countries carry significant unpaid climate debts—70 times greater than those of African nations—yet African countries are pressured into repayment, which often leads to severe cuts in essential services such as health, education, and climate action.
Furthermore, Kinoti criticised the failure of rich nations to fulfil their commitment made under the Paris Agreement in 2015, where they pledged to provide $100 billion annually in climate finance to Global South countries.
Instead of delivering the promised funds, two-thirds of this amount has been offered as loans, exacerbating the existing debt crisis.
In a collective statement, ActionAid's country directors in Africa expressed their concerns regarding illicit financial flows, unmet aid targets, and the biases of credit rating agencies, which complicate Africa's financial landscape.
They emphasized that while debt cancellation is crucial, it is insufficient without a comprehensive overhaul of the international financial architecture.
ActionAid remains optimistic about achieving significant progress on these issues at the upcoming 4th Financing for Development Conference in June 2025.
The organization also welcomed the African Union's declaration of 2025 as the Year of Reparations, viewing it as a vital step toward addressing historical injustices and fostering economic equity across the continent.