By Muhammad Amaan
The Economic Commission for Africa (ECA), said the rising debt, geopolitical instability, and reduced aid flows are increasing external pressure on African economies.
In a statement by ECA, Mr Claver Gatete, Executive Secretary of the body, addressed the Africa Group of ambassadors at the United Nations headquarters.
The session, held at the African Union Mission to the UN, took place amid rising uncertainty and widespread debt distress, inflation, and global trade disruptions.
Mr Gatete highlighted the economic challenges facing African nations and outlined ECA’s response—budget stabilisation, improved data systems, and support for regional priorities.
He described a fragile macroeconomic landscape where the real Gross Domestic Product (GDP) is expected to grow between 2.9 and 3.6 per cent across the continent.
According to him, more than half of African countries now hold public debt above 60 per cent of GDP, seven are in debt distress, and 11 are at high risk.
Severe currency depreciation and growing current account deficits have worsened the situation.
“Nigeria’s naira lost nearly 95 per cent of its value from 2023 to 2024.
“In Egypt, the currency fell 50 per cent since 2023. Africa’s average fiscal deficit reached 5.1 per cent of GDP in 2024.
“External financing is drying up, but government budgets remain under strain.
“We must prioritise domestic resource mobilisation urgently,” said Gatete.
He also warned of Africa’s increasing exposure to global volatility amid aid cuts.
“Official aid fell to 2.1 per cent of GNI in 2023, from 3.4 per cent in 2006.
“Major donors like the U.S., UK, and Germany have announced further aid cuts, exacerbating the continent’s financing gap,” he said.
Meanwhile, Gatete said that rising protectionism in developed economies is impacting Africa’s trade.
According to him, forthcoming ECA research shows U.S. import tariffs could slash African exports by 21.5 per cent.
“This goes beyond trade figures. It affects industrial employment, supply chains, and Africa’s ability to shape global agreements,” he said.
Gatete stressed that technical knowledge must translate into political influence.
“Africa’s voice must be united, coordinated and evidence-based,” he said.
The session, held during the High-Level Political Forum, stressed the need for African diplomacy to be grounded in local expertise and robust data.
He called for closer coordination between Africa’s missions in New York and Addis Ababa, and regional institutions assisting member-states.
“This moment demands unity of purpose and a credible, consistent message,” Gatete urged.
Gatete was joined virtually by Stephen Karingi, Director of ECA’s Macroeconomics, Finance and Governance Division, who also contributed insights.
The meeting also emphasised ECA’s support in areas like taxation, debt sustainability, data strengthening, and AfCFTA implementation.
Recent ECA efforts include property tax reviews in Ethiopia, transfer pricing audits in Mauritania, and customs training in East Africa under AfCFTA.
The Commission is also a knowledge partner to South Africa’s G20 presidency, contributing to policy inputs for the November Leaders’ Summit.
It is working with the African Union and global lenders to reform special drawing rights, blended finance, and institutional governance.
On trade, ECA supports countries in developing and activating national AfCFTA strategies.
