Edson Baraukwa | Africa Guardian
In 2025, more than 20 African nations are projected to allocate more funds to debt servicing than to critical sectors such as healthcare and education. This stark reality is exacerbated by the expectation that global interest rates will remain high, further increasing borrowing costs.
Over half of Africa’s total debt repayment will go to private creditors, driven by the elevated cost of capital. African countries consistently face higher borrowing costs compared to wealthier nations, and debt restructuring processes remain frustratingly slow. For example, Ethiopia, Ghana, and Zambia are still in prolonged negotiations to finalize relief agreements with their creditors.
David McNair, Executive Director of the One Campaign, highlights the increasing role of private lenders, the potential of the IMF and World Bank in reducing borrowing costs, and the unique opportunity presented by South Africa’s G20 presidency to address the continent’s debt crisis.
Africa’s Cement Market Booms
Africa’s cement market is on track to grow from $35 billion in 2024 to $42 billion by 2030, marking an annual growth rate of 4.7%.
One key driver of this growth is the shift of Chinese cement manufacturers to African markets, as they face shrinking demand at home. In 2023, Chinese companies, led by Huaxin, invested in nine new cement projects across Africa, followed by five more in 2024.
With operations spanning seven African countries, Huaxin has become the continent’s second-largest cement producer, trailing only Nigeria’s Dangote Cement.
Suez Canal Expands Amid Red Sea Challenges
The Suez Canal, a critical artery for global trade connecting Asia and Europe, has expanded its capacity with a 10-kilometer extension. This upgrade enables the canal to handle an additional six to eight vessels daily, according to the Suez Canal Authority.
However, the canal’s revenue growth has been tempered by instability in the Red Sea. Since late 2023, attacks by Houthi forces have disrupted shipping in the region, posing challenges to this vital trade route.
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