ADDIS ABABA- The United Nations Economic Commission for Africa (UNECA) suggested African countries to strengthen their economic diplomacy in home-grown expertise and credible evidence as debt crisis and donor retreat intensifies.
In a briefing to the Africa Group of ambassadors at United Nations (UN) headquarters, the Economic Commission for Africa (ECA), Executive Secretary Claver Gatete highlighted the economic pressures facing African countries and outlined ECA’s response, from budget stabilization and strengthened data systems to advancing regional priorities.
The press release issued by ECA indicated that the session came amid growing uncertainty for African economies, with many facing debt distress, inflation and trade disruptions driven by global policy shifts.
“Rising debt, geopolitical instability and declining aid flows are intensifying external pressure on African economies,” the statement reads.
African countries are facing economic pressures, with many facing debt distress, inflation and trade disruptions driven by global policy shifts. In the statement, Claver described a macroeconomic picture that remains fragile despite signs of recovery. Real GDP across the continent is projected to grow between 2.9% and 3.6%.
However, over half of African countries now carry public debt exceeding 60 per cent of GDP. Seven are officially in debt distress, while 11 more are considered at high risk, the statement emphasizes.
Steep currency depreciation, inflation and widening current account deficits have deepened the strain. In Nigeria, the naira lost nearly 95 per cent of its value between 2023 and 2024. In Egypt, the figure stands at 50 per cent since 2023. The average fiscal deficit across the continent reached 5.1 per cent of GDP in 2024, the release indicated.
“External financing is drying up, but the pressure on government budgets keeps growing,” said Claver in the statement, adding, “We cannot overstate the urgency of domestic resource mobilization.”
He also warned that Africa’s exposure to global volatility is deepening. Official development assistance dropped to 2.1 per cent of GNI in 2023, down from 3.4 per cent in 2006. Major donors, including the United States, United Kingdom and Germany, have announced further cuts.
At the same time, protectionist policies in developed economies are beginning to impact Africa’s trade. Forthcoming joint research by ECA, the African Union Commission and the African Development Bank suggests that new United States import tariffs could reduce Africa’s exports to the United States by up to 21.5 per cent.
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“This goes beyond trade volumes,” said Claver. “It affects industrial jobs, regional supply chains and Africa’s voice in shaping the terms of engagement.”
ECA is supporting Member States in finalizing and operationalizing national AfCFTA strategies. Claver emphasized that technical capacity must translate into political leverage. “Africa’s voice must be coherent, coordinated and grounded in evidence,” he said.
He urged stronger alignment between Africa’s permanent missions in New York and Addis Ababa, and the regional institutions supporting member states on the ground. “This is a moment that demands unity of purpose and credibility of message.”
Held on the margins of the High-Level Political Forum, the session reinforced the importance of anchoring Africa’s economic diplomacy in home-grown expertise and credible evidence. The session underscored ECA’s support in domestic taxation, debt sustainability, data systems and AfCFTA implementation. Recent support includes property tax system assessments in Ethiopia, transfer pricing audits in Mauritania and customs training under the AfCFTA in East Africa. The Commission is also serving as a knowledge partner to South Africa’s G20 presidency, contributing to recommendations for the Leaders’ Summit in November. ECA is working closely with the African Union and multilateral development banks to advance reforms on special drawing rights, blended finance and the governance of these institutions, the release concluded.