The debt crisis is constraining Africa's economic development.

       According to a report by "Africa Brief" on January 19th, the World Economic Forum (WEF) stated in its "Chief Economists Outlook" report that the public debt in sub-Saharan Africa has been continuously rising, which has seriously restricted economic development, squeezed the government's fiscal space, undermined investors' confidence, and limited the scope for policy adjustment.

       Debt vulnerability has become one of the most serious structural threats facing African economies in 2025 and 2026. Governments are forced to divert limited public resources from development priorities to loan repayment. The rising public debt is increasingly crowding out investments in infrastructure, healthcare, and job creation. The borrowing originally used to stabilize the economy has gradually evolved into a long-term burden that suppresses productivity and growth.

       The report shows that the confidence of global economists in the growth prospects of sub-Saharan Africa has significantly declined, and most expect the economic performance to weaken. More than four-fifths of central bank governors expect to keep interest rates unchanged in the short term, as further tightening of policies may suppress growth, while loose policies carry the risks of inflation and capital flight.

       High debt has also weakened the ability of countries to access low-cost external financing. Governments have turned to domestic borrowing, which has intensified the pressure on the local financial system. At the same time, when governments raise taxes to stabilize their finances, it may lead to the suppression of household consumption and corporate investment. (Economic and Commercial Office of the Embassy of the People's Republic of China in the Republic of Ghana)