South Africa established an expert panel to address issues in Africa during the country's chairmanship of the Group of 20 economies, including the continent's high debt burden.

African countries are collectively scheduled to pay almost $89-billion in external debt service costs this year alone, while 20 nations face the risk of falling into debt distress, according to a statement distributed by the National Treasury in Cape Town on Wednesday. High debt levels in Africa are curbing spending on health, education and infrastructure.

South Africa is the first country on the continent to host the Group of 20. The nation is using its presidency of the group, which accounts for 85% of the world's gross domestic product, to address issues facing Africa.

"The high level of debt is unsustainable and undermines efforts towards sustainable development and poverty alleviation," the Treasury said. "There is a need for bold and urgent action on a comprehensive plan to deal with the high levels of debt of Africa and other developing countries."

The Africa Expert Panel will be chaired by former South African Finance Minister Trevor Manuel.