Archbishop Dr Thabo Makgoba of South Africa called for dropping the debt. “Debt is choking the countries of the Global South and denying us what we need for health and education. Please let us breathe.”
Sierra Leone’s mounting public debt has reached alarming levels, with the country now spending 15 times more on debt servicing than on the health of its citizens, according to UNAIDS Executive Director, Winnie Byanyima.
This stark reality underscores the severe financial strain that has crippled the nation, diverting essential funds away from critical sectors like healthcare. The imbalance in expenditure raises significant concerns about the long-term sustainability of Sierra Leone’s economic and social development.
In a broader context, Sierra Leone is not alone in facing such challenges. Byanyima highlighted that several other African countries, including Angola, Kenya, Malawi, Rwanda, Uganda, and Zambia, are grappling with similar issues.
These nations are spending more than half of their government revenues just to pay interest on their debts. The situation is particularly dire in Sub-Saharan Africa, where half of the countries are either in debt distress or at high risk of it.
On average, these countries are spending three times more on debt interest payments than on healthcare, further exacerbating public health crises and undermining efforts to improve living standards.
Given this pressing situation, there is a growing call for swift and effective debt restructuring processes that prioritize human rights and the well-being of people.
For Sierra Leone, addressing this debt crisis is critical not only to prevent further economic deterioration but also to ensure that its citizens have access to basic health services and other essential needs.
The international community’s support in restructuring debt in a way that centres on people’s well-being will be vital for the country’s future stability and development.
Debt trap diplomacy has caused countries choke on debt
Archbishop Dr Thabo Makgoba of South Africa called for dropping the debt. “Debt is choking the countries of the Global South and denying us what we need for health and education. Please let us breathe.”
This is why UN Secretary-General Antonio Guterres calls out for a restructuring of debt to free the countries for investing in the health of their people. Debt trap is not new, but its impact has become more lethal for those who are likely to be left behind.
“Loan interest rates suddenly rose by three to four times when the war in Ukraine broke out.
“Countries in debt are nowhere (geographically) close to where the war is being fought and yet reeling under debt which has grown manifold. When the low and middle-income countries go to the market to borrow, they do not borrow at the same rate as a richer nation would.
“A poor country has to borrow at a four times higher rate than a country like Germany would from the same market. There are inequalities even in the financial architecture,” explained Winnie Byanyima.
This is the reason why UN head Antonio also called upon reforming the whole financial architecture to level the ground for developing countries.
