Africa is trapped in a vicio us cycle. It faces escalating climate disasters but spends more on de bt 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 renewab le 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 - dev eloped countries pledged $300 billion annua lly by 2035 for g lobal climate finance.
But African leaders demanded $1.3 trillion, the minimum required to implement thei r climate plans alone.
At a packed side-event titled "Securing Africa's Agency in the 2025 Climate Finance Agenda", experts called for debt cancellat ion.
The math reveals in justice. 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.
Olufun so Som orin of the African Development Bank framed it as both a development and a climate trap.
" D ebt servicing in Africa has risen fr om $17 billion in 201 0 to $74 billion in 2024," he said.
"Commerc ial rates cannot support development, let alone climate resilience. Without ref orm and relief, this is a lo st decad e ," said Dr Somorin.
Mohamed Ado w, Director of Power Shift Africa, at COP29 captured the sentime nt, 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 excee ds the climate finance it r eceives, creat ing 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 reb uild. 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 pro blem. With its debt-t o-GDP ratio hitting 70 per cent in 2024, debt rest ructuring t alks sta lled public investment in flood defences and solar energy, leaving communities exposed.
Gloria M ajiga of Tax Justice Network observed, "Debt servicing steals from our future. We p ay banks while storm s erase our villages."
Private creditors, who hold 43 per cent of Africa's debt, resist restructurin g, prioritising profits over people.
The case for debt ca ncellation grows strong er when considering climate justice. Rich countries ow e Africa $36 tri llion in climate reparations for historical emissions, acc ording to ActionAid.
