Loans are a double-edged sword; when managed properly, they may fuel growth in any given economy, but when excessive, they can ruin a country’s finances. In Africa, where there are economic disparities across nations, the debt load is not uniformly spread.
- Business Insider Africa presents the top 10 African countries with the highest percentage of Africa’s debt.
- This list is courtesy of a report by Afeximbank Research.
- South Africa ranks number 1 on the list.
Africa’s external debt levels remain high, owing to the slow development of local financial systems and high interest rates.
The increasing demand for foreign money to finance imports has increased external indebtedness, which is driven by reliance on aid, concessional loans from multilateral institutions, and competitive interest rates given by private creditors, as per a report by Afreximbank Research
The same report, titled African Debt Outlook: A Ray of Optimism, also revealed that Africa’s public debt-to-GDP ratio is lower than other regions.
“Recent initiatives suggest that Africa is making significant strides in stabilizing its debt profile, with a projected decline in debt levels expected by 2027-2028. This positive trajectory is fueled by favorable macroeconomic conditions, improved fiscal management, and enhanced access to capital markets,” the report states.
However, till then, Africa’s increasing debt is set to continue on an upward trajectory.
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“Since 2008, the external debt of African countries has escalated significantly, reaching approximately US$ 1.16 trillion and representing 60 percent of the region’s total public debt stock as of 2023. Projections indicate a slight increase to US$ 1.17 trillion in 2024, with sustained growth anticipated, potentially reaching US$ 1.29 trillion by 2028,” the report adds.
The debt issue currently plaguing most of the continent is shouldered by a few countries. According to the report.
In the first half of 2024, ten African states held 69% of the continent’s total external debt stock, up from 67% the year prior.
With that said, here are the 10 countries on the continent with the highest percentage of the continent’s debt.
Top 10 African countries with the highest percentage of Africa’s debt
| Rank | Country | % of Africa’s debt |
|---|---|---|
| 1. | South Africa | 14% |
| 2. | Egypt | 13% |
| 3. | Nigeria | 8% |
| 4. | Morocco | 6% |
| 5. | Mozambique | 6% |
| 6. | Angola | 5% |
| 7. | Kenya | 4% |
| 8. | Ghana | 4% |
| 9. | Côte d’Ivoire | 3% |
| 10. | Senegal | 3% |
