African Leaders Call for Financial System Reforms to Address Debt Crisis

At the United Nations on September 26, leaders from Africa, the Caribbean, and the Indian Ocean warned that high borrowing costs and debt repayments are draining funds intended for essential services like hospitals, education, and infrastructure across the developing world. Leaders stated that global public debt reached a record $102 trillion in 2024, noting that 46 developing countries currently spend more on interest than on health or education. President William Ruto also called for reforms to reduce Africa’s cost of capital, noting that high debt costs are squeezing national budgets and limiting investment in key sectors.

The calls center on the need for greater access to affordable financing and systemic financial market changes to support development across the continent. Leaders urged for measures to lower Africa’s cost of capital, expand guarantees, and strengthen domestic revenue mobilization to reduce reliance on external borrowing.

President Ruto is advocating for Africa's investment agenda, which includes promoting competitive economic zones and leveraging Nairobi as a tech hub.