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The recurring debt strain across Africa is not simply a story of failure, but one of unfinished adjustment. That is the view emerging from Business Africa’s conversation with Zeine Zeidane, the newly appointed director of the IMF’s African Department, as governments across the continent once again face rising borrowing pressures.
Zeidane argues that many African economies have made real progress, even if debt distress keeps resurfacing. He points to repeated shocks since year 2000, including the pandemic, conflicts and higher global interest rates as major forces that have weakened fiscal positions and complicated debt management.
At the same time, he says, African countries have also improved their policy frameworks and reduced debt vulnerabilities in several cases. In his view, the continent is not trapped in a permanent debt spiral, but in a cycle repeatedly interrupted by external shocks and incomplete reform.
The bigger issue is that Africa’s development needs remain high while financing remains expensive. Governments are expected to fund infrastructure, energy and climate investments, yet they are also being asked to borrow more carefully and preserve debt sustainability. That tension is now one of the continent’s central policy challenges.
Zeidane’s comments also underline a wider point: debt outcomes are shaped by global conditions as much as domestic choices. He says countries must strengthen fiscal policy and structural reforms, but the international community must also provide financing at lower cost if Africa is to meet its development goals without constant refinancing stress.
The theme extends beyond sovereign balance sheets. Nigerian businesses are turning to stablecoins to manage inflation and cross-border payments, showing how private actors are also searching for alternatives when formal financial channels are costly or slow.
South Africa’s micro-winemakers tell a similar story from a different sector. By scaling from tiny urban plots and bypassing traditional retail channels, they are showing that local identity and creative business models can unlock markets that once seemed reserved for deep-pocketed producers.
Taken together, these stories suggest a broader continental shift. Africa is not only debating how to escape debt distress, but also how to build more resilient financing, more flexible business models and more locally anchored value chains.
