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Africa is trapped in a vicious cycle. It faces escalating climate disasters but spends more on debt repayments than on protecting its people.
In 2023, African nations paid more than $70 billion in debt servicing, money that could have built climate-resilient infrastructure, expanded renewable energy, and funded adaptation projects . Instead, they borrowed more to survive crises they did not create.
At COP29 — the United Nations Climate Change Conference held in Baku, Azerbaijan, between November 11 and 22, 2024 — developed countries pledged $300 billion annually by 2035 for global climate finance.
But African leaders demanded $1.3 trillion, the minimum required to implement their climate plans alone.
At a packed side-event titled “Securing Africa’s Agency in the 2025 Climate Finance Agenda”, experts called for debt cancellation.
The math reveals injustice. Africa requires $ $1.3 trillion annually for adaptation, renewable energy, and loss compensation.
Thus, the $300 billion pledged at COP29 represents a fraction of what is required, with no clarity on how much will come as grants or loans.
Olufunso Somorin of the African Development Bank framed it as both a development and a climate trap.
“Debt servicing in Africa has risen from $17 billion in 2010 to $74 billion in 2024,” he said.
“Commercial rates cannot support development, let alone climate resilience. Without reform and relief, this is a lost decade,” said Dr Somorin.
Mohamed Adow, Director of Power Shift Africa, at COP29 captured the sentiment, stating, “The $300 billion deal is an insult. It condemns us to more debt or more disasters.“
This funding shortfall compounds Africa’s existing debt crisis. The continent’s $74 billion annual debt servicing exceeds the climate finance it receives, creating a paradox where nations must prioritise creditors over survival.
Mozambique exemplifies this cycle of ruin. After Cyclones Idai and Freddy destroyed infrastructure, the country took loans to rebuild. Today, more than 90 per cent of its climate finance is debt-driven, diverting funds from health and education.
Ghana’s fiscal trap further illustrates the problem. With its debt-to-GDP ratio hitting 70 per cent in 2024, debt restructuring talks stalled public investment in flood defences and solar energy, leaving communities exposed.
Gloria Majiga of Tax Justice Network observed, “Debt servicing steals from our future. We pay banks while storms erase our villages.”
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Private creditors, who hold 43 per cent of Africa’s debt, resist restructuring, prioritising profits over people.
The case for debt cancellation grows stronger when considering climate justice. Rich countries owe Africa $36 trillion in climate reparations for historical emissions, according to ActionAid.
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