ADDIS ABABA: A stark warning issued at the Second Africa Climate Summit in Addis Ababa continues to echo across global policy circles: African countries cannot build a climate-resilient future while weighed down by unsustainable debt.

The message, delivered by former Ethiopian Prime Minister Boshe, urges G20 governments to confront a crisis that has become central to both climate action and economic stability.

Mounting pressure from debt and climate costs

Sub-Saharan Africa needs an estimated 143 billion dollars in climate financing every year, an amount equal to roughly 7 percent of the region’s total GDP. According to recent assessments, however, only about one-quarter of that money currently reaches the continent. At the same time, African countries spent nearly 90 billion dollars in 2024 servicing external debt.

Analysts say the imbalance has created a cycle that leaves governments with little room to invest in adaptation projects, clean energy infrastructure, or long-term development plans. Each dollar diverted to creditors is a dollar that cannot be used to manage rising temperatures, worsening droughts, and more frequent cyclones.

“The idea that Africa can fund the green transition while paying enormous sums on interest simply does not add up,” Boshe told delegates at ACS2.

A global system stacked against vulnerable economies

Economists point to deeper structural problems in the international financial system. Between 2022 and 2024, foreign private creditors collected about 141 billion dollars more in debt-service payments from developing countries than they provided in new lending, according to development finance researchers.

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Meanwhile, institutions such as the World Bank and the International Monetary Fund have increasingly stepped in as lenders of last resort, attempting to fill financing gaps they were never designed to carry. Critics argue that this arrangement allows the wealthiest stakeholders to benefit most from the system while the poorest countries bear the greatest risks.

A lack of a predictable, credible mechanism for resolving sovereign debt has left dozens of African governments in distress. Many countries, fearing market punishment or credit-rating downgrades, have resorted to cutting budgets for education, healthcare, and climate programmes in an effort to avoid default.

G20 summit expected to face hard choices

The upcoming G20 summit in Johannesburg, the first to be held on African soil, has raised expectations that world leaders will commit to meaningful debt restructuring for heavily burdened economies. African advocates say the meeting must produce clear timelines, shared accountability among creditors, and a permanent system for addressing unsustainable liabilities.

“This is not a request for leniency,” Boshe noted. “It is a request for rational policy.”

A United Nations Development Programme report cited at ACS2 found that 16 African countries paid 74.5 billion dollars in excess interest between 2000 and 2020 because credit-rating agencies overstated their risk levels. Economists say the findings highlight systemic bias in an industry dominated by a handful of firms.

Why debt relief now matters for climate security

Experts warn that continued delays could undermine global climate goals. Severe flooding in Mozambique, prolonged drought in Somalia, and destructive cyclones in Madagascar already demonstrate how climate shocks in Africa can have ripple effects on migration, regional stability, and food security.

Debt relief, researchers say, is becoming a prerequisite for climate resilience. Without it, Africa’s efforts to cut emissions, protect vulnerable communities, and expand renewable energy will remain underfunded.

The last major global action on debt relief occurred in 1996 when the IMF and World Bank launched the Heavily Indebted Poor Countries Initiative. While that programme provided essential support, policy specialists argue that today’s climate-era challenges demand a more ambitious approach, including debt solutions directly linked to resilience and adaptation needs.

A turning point for global finance

When the African Union first sought a permanent seat in the G20 more than seven years ago, many dismissed the possibility. Today, the AU sits alongside the world’s largest economies. Advocates say this moment could similarly mark a turning point for global debt reform if the will exists.

Any further delay, analysts warn, risks pushing more African countries into default and prolonging a cycle that undermines both development and climate stability.

As Boshe reflected, quoting a phrase long associated with Nelson Mandela, “It

always seems impossible until it is done.”