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Africa's Youth Protests Linked to High Debt, Experts Warn

Strategic Insights

— 2 min read

The recent wave of youth protests across several African countries, including Kenya, Uganda, and Nigeria, is deeply connected to the high levels of debt accumulated by their governments, according to experts. The protests, characterized by demands for better governance and an end to fiscal mismanagement, are a reflection of the dire economic situation faced by the continent's youth. The ruling elite's decisions to take on massive debts, often at the behest of international lenders, have put a significant burden on the poor, leading to widespread discontent.

Key Takeaways:

  • Kenya's public and publicly guaranteed debt stood at Ksh10.3 trillion ($79.3 billion) at the end of March, representing 67 percent of GDP, well above the World Bank and IMF's recommended maximum of 55 percent.
  • The Kenyan government had planned to raise additional revenue of Ksh346 billion ($2.68 billion), or three percent of GDP, through the measures of the fallen Finance Bill 2024.
  • Most of Kenya's debt is owed to international lenders, with China being its biggest bilateral creditor, owed $5.7 billion.
  • The Kenya government's decision to continue borrowing to service debt and pass the burden to citizens led to protests, with the Gen-Z movement calling for good governance and an end to fiscal mismanagement.
  • Uganda's public debt has risen to Ush96.1 trillion ($25.3 billion or 52 percent of GDP) as of June 2023, according to an Auditor-General's report released recently.
  • In Nigeria, protests kicked off on August 1, promoted online with hashtags such as #EndBadGovernanceinNigeria and #EndBadGovernance2024, aimed at holding President Bola Tinubu's government accountable for economic mismanagement and corruption.
  • Annual debt service payments in the world's poorest countries are 50 percent higher than they were just three years ago, with nearly half of all government revenue in sub-Saharan Africa being consumed by debt servicing in 2023.

Statistics:

  • Kenya's public and publicly guaranteed debt stands at Ksh10.3 trillion ($79.3 billion), representing 67 percent of GDP.
  • World Bank and IMF's recommended maximum debt-to-GDP ratio is 55 percent.
  • Additional revenue of Ksh346 billion ($2.68 billion), or three percent of GDP, was planned through measures of the fallen Finance Bill 2024.
  • Uganda's public debt has reached Ush96.1 trillion ($25.3 billion or 52 percent of GDP).
  • Annual debt service payments in the world's poorest countries are 50 percent higher than three years ago.
  • Nearly half of all government revenue in sub-Saharan Africa was consumed by debt servicing in 2023.

Sources:

  • Jason Braganza, executive director at African Forum and Network on Debt and Development (Afrodad)
  • Faides Tembatemba, Action Aid Country Director for Zambia
  • Prof James Gathii, Wing-Tat Lee Chair in International Law and professor of Law at Loyola University Chicago School of Law
  • UN Secretary-General Antonio Guterres

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