A recent study conducted by the Ghana International Trade and Finance Conference (GITFiC) has revealed that Africa’s 54 member states collectively owe a staggering $1.215 trillion in debt.
The research also highlighted several key economic indicators for the continent, including an average inflation rate of 12.2%, a total population of 1.34 billion, an unemployment rate of 7.7%, an average lending rate of 19.5%, and an average growth rate of 3.8%.
Mr. Selasi Koffi Ackom, Chief Executive Officer of GITFiC, shared these findings during a press briefing ahead of the upcoming 8th Ghana International Trade and Finance Conference, which will be held on September 6, 2024.
The conference, themed “A Call for a New Global Financing Pact: Collaborative Pathways to Economic Resilience and Global Prosperity,” will focus on Africa’s debt challenges. GITFiC is advocating for a Global Debt Initiative, which is outlined in its position paper, “Revisiting the Debt Burden on Developing and Least Developed Economies.”
Mr. Ackom explained that the research assessed all 54 African nations using eight key economic indicators: IMF status, lending rate, inflation rate, unemployment rate, GDP, GDP growth, GDP per capita, and gross external debt. The study relied on the latest available data from reputable sources, including the World Bank, International Monetary Fund, AlFred Economic Data, Trade Economics Data, Statista, the OECD, and the United Nations.
“This comprehensive analysis has enabled us to produce highly accurate indicators, with an estimated accuracy rate of 92.7%,” Mr. Ackom noted. He emphasized that the findings are intended to inform the African public, business communities, and stakeholders about the economic commitments and programs of African nations, particularly in relation to the International Monetary Fund (IMF).
He further explained that the credibility of these policies and structural adjustment programs directly impacts both the fiscal and monetary aspects of an economy.
GITFiC’s research aims to evaluate the health of Africa’s economies both before and after the COVID-19 pandemic, supporting its call for a Global Debt Initiative as a long-term solution to create fiscal space and promote sustainable economic growth.