Ask your MP to write to the Prime Minister to call for urgent action on the debt crisis.
Join our webinar on 26 May to hear how low-income countries like South Sudan are struggling with huge debt burdens.
"Shouldn't all debts just be repaid?" Read the answer to this and other questions about the global debt crisis.
Everything you need to run our new petition about the global debt crisis in your parish this summer.
Hope Adero is a student at the University of Notre Dame (USA) and CAFOD volunteer. Originally from Uganda, she explains why the global debt crisis isn't just 'irresponsible borrowing'.
When African countries face debt crises, the story is always the same: poor governance, corruption, and irresponsible borrowing. But this ignores a crucial truth: that most debt crises are caused by forces completely beyond Africa's control.
Picture Zambia's finance minister trying to balance the budget. Copper makes up 70% of Zambia’s exports. Suddenly, prices crash on the London Metal Exchange - not because of anything Zambia did, but because China's property sector slowed. Export earnings drop by half overnight. Debt payments stay the same. Crisis.
This isn't hypothetical. Between 2011-2016, copper fell from $4.50 to under $2 per pound. Zambia, which borrowed during the boom years, suddenly couldn't service its debt. Default became inevitable by 2020. Similarly, Ghana grows cocoa; Swiss corporations set prices. When prices fall, Ghana's income collapses, but their debt remains. This pattern has repeated across Africa.
The power of the US dollar worldwide is making the problem worse. Most of Africa’s foreign debt is owed in dollars. This means that when the US Federal Reserve raises interest rates to fight inflation at home - a decision made with zero consideration of Africa - Africa’s debt becomes more expensive overnight, and debt crises erupt across the continent.
When the Fed raised rates from 0% to 5% (2022-2024), for example, servicing foreign debt became more expensive for low-income countries overnight. Ghana defaulted. Zambia's recovery stalled. Kenya’s economy nearly broke. Not from mismanagement, but as a result of decisions made in Washington. While the US can print dollars to pay its debts, African countries must earn dollars through export of goods whose prices they don't control. In this way, the system is rigged against them.
Debt mural in Seville, Spain, at the time of the 4th international Financing for Development conference, July 2025
Join us online on 26 May to hear how low-income countries like South Sudan are struggling with huge debt burdens.
Hear from:
Kumi Anthony, Programme Manager, South Sudan
Maria Finnerty, CAFOD’s Lead Economist
Helen Moseley, Campaign Coordination Manager, who will share how we can all help push for change.
Africa causes 3% of global emissions, but suffers disproportionate consequences. When Somalia faced its worst drought in 40 years, they borrowed to import food. Credit agencies then punished Somalia for 'excessive debt', reducing their credit ratings and thus raising their borrowing costs. The logic: you're hit by a climate disaster you didn't cause, forced to borrow to survive, then punished for being 'irresponsible'.
Global financial shocks also hit African countries hardest. When Russia invaded Ukraine in 2022, wheat and fertiliser prices exploded. Egypt imports 80% of wheat from Russia and Ukraine. The war wasn't Egypt's fault, but their debt crisis deepened as food bills doubled. Kenya, Tunisia and Somalia all faced identical shocks.
When commodity prices boom, international banks and wealthy investors aggressively push loans to African countries. These creditors (which manage trillions for the super-rich) loan money at 6-10% interest while borrowing at 0-1% themselves. They know the risk; that's why they charge high rates. When prices inevitably crash, these same wealthy creditors demand full repayment regardless of human cost. African taxpayers, often living on under $2 a day, service debt owed to billionaires and investment funds in New York, London and Paris. Interest payments flow upward: from the global poor to the global rich. The top 1% who control most global wealth also control most government bonds. Yet when countries can't pay, it's called 'irresponsible borrowing', rather than 'predatory lending'.
Debt crises are caused by global commodity prices, US interest rates, climate disasters, geopolitical shocks and predatory creditors - all factors African countries cannot control. This isn't about irresponsible borrowing, but a structural problem requiring comprehensive debt cancellation, fair and transparent ways to borrow money, proper help when climate disasters hit, and a global financial system that works for everyone, not just the 1%.
