World's poorest countries are prioritizing debt service over investments

Oct. 8, 2024 - Business Insider Africa

The world's poorest nations are being forced to prioritize debt repayments over important investments, affecting their progress toward achieving sustainable development goals, according to Achim Steiner, the head of the United Nations Development Programme. They cannot borrow any more money," Steiner stated, adding that they must draw down other spending to avoid debt default.

Nearly half of the continent's countries face difficulties making their debt repayments according to figures compiled by the World Bank and International Monetary Fund. Worse still, countries such as Ghana, Ethiopia, Zambia and Sri Lanka have defaulted on their debt in recent years.

ADVERTISEMENTAchim Steiner, head of the United Nations Development Programme, stressed that increasing financial resources is "absolutely central" to achieving sustainable development goals...