Africa’s external debt exceeds $1 trillion. ‘It affects the whole world’

Africa’s economic problems translate into, among other things, The stability of local democracies and, above all, the fight against the climate crisis, which is a global problem.

In early July Kenya has been rocked by protests over President William Ruto’s government’s attempt to raise taxes.Which aimed to increase the state budget revenues.

Protests by Western media – including The Economist – were described as The Generation Z movement, driven by the age of the protesters, has spread across the country. And the demonstrations continued She was brutally pacified by Kenyan security forces, ko They have been condemned by NGOs such as Amnesty International and part of the international community.

Despite Ruth He withdrew his intention to change the tax law and dismissed almost the entire government, The newly appointed Minister of Finance has already announced this. The authorities will want to return to some tax changes.

The protests in Kenya were economically motivated: many young people cannot find work, and the cost of living is rising. Kenya is not the only country with this problem. Most African countries are experiencing economic problems, primarily having difficulty paying their debts to international institutions, such as the World Bank, and private funds.

Report prepared by Development Finance Lab (Financing for Development FDL) was co-created by researchers from Columbia University School of Economics and Paris Show it Africa’s external debt amounted to more than a trillion dollars at the end of last year.

Debt creates a spiral of problems. Countries have to service their debts, so there is no new investment to create jobs. The New York Times reported that Africa has the highest natural increase in the world. Another problem that affects the whole world is Lack of funds to combat the effects of the climate crisis – I noticed the daily.

Economic recession coupled with government corruption and wrong decisions, The newspaper said that many African countries are more vulnerable to brutal wars, coups and riots.

Uganda, which owes $12 billion to foreign lenders, saw major anti-corruption protests in July. In Kenya, where foreign debt stands at $35 billion, many who had already taken part in the protests said they were ready to take to the streets again if the government tried to raise taxes again.

The actions of international institutions that grant more loans do not improve the situation because – as the FDL report says – The international community transfers additional funds to developing countries, which use these funds to pay off their previous obligations.