High-interest rates and high debt levels directly limit investment capacity in African countries, including climate-focused investments. This creates a risk of a vicious cycle of underdevelopment and delayed climate preparedness, with potential social and economic implications intensifying over time and spillover effects beyond national borders. There is clear private sector financial retrenchment from Low- and Middle-Income Countries (LMICs), including IDA-eligible countries of which 39 are in Africa. In 2022, private creditors withdrew U$189 billion more in principal repayments than they provided in loans, the first time that private creditors have taken out a greater amount than they invested in developing nations since 2015. Chinese development finance from its two policy banks has decreased, and hit a 13 year low in 2021; meanwhile, finance from multilateral creditors has provided a steady lifeline for countries, increasing 1.5% to US$115.6 billion in 2022. […]