Italy commits to slashing debt of low, and middle-income countries by half in 10 years

ITALY has unveiled an ambitious debt-relief plan aimed at easing the financial burden on lowand middle-income countries, declaring that sustainable development cannot be achieved without addressing the crushing debt many nations face.

- SIPHELELE DLUDLA

Africa faces growing financing pressures as rising debt service costs severely constrain development. By the end of 2024, public debt to countries and multilateral financial institutions had reached $1.815 trillion, while annual debt servicing climbed to $163 billion, leaving 57% of Africans living in countries where debt payments exceed health or education spending.

The high level of debt is unsustainable and undermines efforts towards sustainable development and poverty alleviation. The G20 Ministerial Declaration on Debt Sustainability has signaled the intent of the G20 to do more to tackle unsustainable levels of debt alongside the rising cost of capital, particularly for African countries.