New ONE Data Analysis Supported by The Rockefeller Foundation Reveals Cost of Borrowing for African Countries Rose 91% Since 2020

April 14, 2026 - 05:59

A stark new analysis reveals the severe and growing financial pressure on African governments, with the cost of borrowing for countries across the continent skyrocketing by 91% since 2020. This dramatic increase, documented between 2020 and 2024, highlights a deepening crisis that threatens to divert critical funds away from essential public services and development projects.

The surge in borrowing costs is primarily driven by rising global interest rates and heightened perceptions of risk among international investors. As a result, African nations are forced to pay significantly more to service existing debts and to secure new financing. This financial strain comes at a precarious time, with many countries already grappling with the lingering economic impacts of the pandemic, climate-related challenges, and global inflationary pressures.

Experts warn that this trend could severely constrain national budgets, forcing difficult choices between debt repayment and investments in healthcare, education, and infrastructure. The increased cost of capital risks slowing economic growth and development progress across the region, potentially widening the gap between African nations and the rest of the world. The data underscores an urgent need for international financial architecture reform and more sustainable lending mechanisms to support long-term stability and growth.