Africa’s rapid economic growth is being overshadowed by a substantial funding gap, warns the Economic Commission for Africa (ECA). Despite 11 of the world’s fastest-growing economies, including Ethiopia, the continent faces an annual funding shortfall of USD 670 billion to meet the 2030 Sustainable Development Goals (SDGs).
The ECA’s recent policy brief reveals mixed progress, with Africa advancing on 12 of the 17 SDGs. However, the pace is insufficient to meet the 2030 targets due to ongoing global challenges, such as the lingering effects of the COVID-19 pandemic, geopolitical conflicts, and escalating climate change risks. Although the continent’s economic growth remains promising, with real GDP growth projections of 3.5% for 2024 and 3.6% for 2025, these gains are overshadowed by the rising public debt, which limits fiscal space.
Africa’s development is strained by high debt, with the median public debt ratio surpassing 60% of GDP in 2023. Many low-income countries are struggling, with 20 out of 38 at risk of or already in debt distress. This has forced governments to divert significant funds from development sectors like health and education to cover debt servicing, causing investment in these areas to grow at slower rates.
The ECA emphasizes that aligning national development plans with financing strategies is crucial for achieving the SDGs by 2030.
