Addressing Africa State Of Debt And Their Intergenerational Impact On Youths.

Introduction

Africa stands at a critical crossroads. After early debt relief in the 2000s, many African states are once again grappling with rising debt levels, worsened by the COVID-19 pandemic, global conflicts, inflation, and the escalating climate crisis. This resurgence of debt has far-reaching consequences—not only for governments but also for Africa’s youth, who make up more than 60% of the population.

As nations prepare for the Fourth International Conference on Financing for Development (FFD4) in 2025, the urgency of addressing Africa’s debt burden has never been greater. The choices made today will define whether young Africans inherit a future of opportunity—or one weighed down by unsustainable debt.

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Why Youth Must Be at the Center

Africa has the world’s youngest population, projected to reach 2.5 billion by 2050. If equipped with quality education, healthcare, and decent work, this demographic can drive innovation, peace, and prosperity. But if neglected, the youth bulge could fuel instability, unemployment, and migration pressures.

Debt repayments directly compete with investments in schools, hospitals, and job creation programs. Without a youth-centered approach to debt sustainability, Africa risks mortgaging its future.

Debt, Development, and the SDGs

National debt directly undermines progress toward the Sustainable Development Goals (SDGs). Resources that should support education (SDG 4), healthcare (SDG 3), and job creation (SDG 8) are being diverted to debt servicing.

  • No Poverty (SDG 1): Debt reduces funding for social protection programs.

  • Quality Education (SDG 4): Underfunded schools and outdated curricula hinder skills development.

  • Decent Work (SDG 8): High debt crowds out private sector investment, limiting job opportunities.

  • Climate Action (SDG 13): Limited fiscal space slows adaptation and mitigation efforts.

  • Peace, Justice & Strong Institutions (SDG 16): Youth disillusionment from lack of opportunities risks unrest.

Addressing debt is therefore not just an economic issue—it is essential for achieving the 2030 Agenda.

How Debt Harms Youth Development

  1. Education Cuts: High repayments mean fewer resources for schools, teachers, and vocational training.

  2. Weakened Healthcare: Many African countries spend more on debt interest than on healthcare.

  3. Job Market Struggles: Debt crowds out private sector investment, reducing opportunities for SMEs and youth entrepreneurs.

  4. Social Instability: Limited opportunities lead to frustration, migration, and instability.

The cycle is vicious: inadequate investment in youth weakens long-term growth, making debt even harder to manage.

The Role of Youth-Led Organizations

Youth and civil society groups are stepping up to advocate for debt sustainability and inclusion.

  • OAYouth Kenya focuses on green skills and entrepreneurship.

  • African Youth 4Climate (AY4C) promotes sustainable development and climate resilience.

  • FEMNET highlights the gendered impacts of debt from a feminist perspective.

  • CFLE Africa drives financial literacy campaigns.

  • TrustAfrica’s “Stop the Bleeding” campaign pushes for tax reforms and ending illicit financial flows.

These organizations amplify young voices and push governments and global institutions toward fairer financial systems.

Recommendations for Governments and Global Partners

To ensure Africa’s youth inherit opportunities—not debt—several measures are critical:

  1. Strengthen Domestic Resource Mobilization

    • Improve tax systems, adopt digital tax frameworks, and curb illicit financial flows.

  2. Foster International Cooperation

    • Establish a global debt workout mechanism.

    • Reform the G20 Common Framework to ensure fairer debt relief.

    • Suspend IMF surcharges and reform credit rating systems.

  3. Promote Sustainable Borrowing and Transparency

    • Strengthen debt management capacity.

    • Increase transparency and accountability in borrowing.

    • Include civil society and youth in debt monitoring.

  4. Invest in Youth Empowerment

    • Prioritize job creation, entrepreneurship, and financial literacy.

    • Expand social protection systems to shield young people during crises.

Gaps That Remain

Despite progress, significant gaps persist. Many debt strategies fail to consider the intergenerational impacts on youth. The lack of participation in decision-making creates a sense of injustice, while forced migration due to limited opportunities results in brain drain.

Crucially, the mental health toll of economic insecurity—stress, disillusionment, and hopelessness among young people—remains under-addressed.

Conclusion

Africa’s debt crisis is not only an economic challenge but also an intergenerational justice issue. Unsustainable borrowing undermines education, healthcare, jobs, and the very future of Africa’s youth.

The path forward must be grounded in transparency, fairness, gender responsiveness, and meaningful youth participation. With bold reforms and genuine investment in young people, Africa can turn its demographic dividend into a driver of sustainable growth—rather than a casualty of debt.