Step 4 – Debt Accumulation (Disadvantage)

Step 4 – Debt Accumulation (Disadvantage)

Elder Dinku: “But the money we borrowed is a heavy rope. When the rains fail, our farmers cannot pay taxes, and the loan repayments still come due.”

Alem’s Note: Ethiopia’s external debt rose from $2 billion in 2015 to $7 billion in 2024. Servicing the debt consumes roughly 8 % of the national budget, limiting spending on health and education.