UN Chief Warns Inadequate Debt Relief in Africa Could Spark Social Unrest
United Nations Secretary-General Antonio Guterres has issued a stark warning that Africa’s limited access to debt relief and scarce resources may lead to increased social unrest across the continent.
Speaking at the Forum on China-Africa Cooperation (FOCAC) summit in Beijing, Guterres called for urgent reforms to the international financial architecture to better address the growing debt crisis in African nations.
“The current debt situation in Africa is unsustainable and a recipe for social unrest,” Guterres said, noting that countries lack effective debt relief, concessional funding, and essential resources to meet the basic needs of their populations.
Recent months have seen civil unrest in Kenya, Nigeria, and Uganda, where citizens protested against rising costs of living and proposed tax hikes.
While African nations have attempted to restructure their debts through the G20’s Common Framework, the process has been slow and ineffective. Zambia became the first country to successfully restructure its debt under the scheme in June 2024, three years after defaulting on its loans.
Guterres advocated for “deep reforms to the outdated, ineffective, and unfair international financial architecture” and called for additional stimulus to provide liquidity to developing countries, while seeking long-term solutions.
China, the world’s largest bilateral lender, has pledged 360 billion yuan ($50.70 billion) in fresh financing to Africa over the next three years, as announced by President Xi Jinping at the FOCAC summit.
Guterres commended China’s contributions, citing its potential to drive a “renewable energy revolution” and catalyze transitions in food systems and digital connectivity across Africa.
Angola’s finance minister also revealed ongoing discussions with Beijing, Brussels, and other parties to secure funds aimed at curbing inflation and advancing public-private partnerships.
Source: CNBC AFRICA
