Rising government debt in several African nations, particularly in Sub-Saharan Africa, is creating a host of economic challenges, including currency depreciation and declining investor confidence.
Governments are increasingly tasked with reducing their debt burdens, though many struggle to do so effectively.
According to the World Bank’s latest Africa Pulse report, Sub-Saharan Africa’s external public and publicly guaranteed (PPG) debt has been steadily increasing over the last decade.
Since 2006, the region’s PPG external debt has more than quadrupled, rising from US$108 billion to US$462 billion by 2022.
The report also highlights a shift in the sources of external funding for the region. While bilateral Paris Club creditors provided 22% of Sub-Saharan Africa’s foreign debt in 2006, this figure dropped to just 5% by 2022.
In contrast, bilateral non-Paris Club creditors, notably China, have stepped in to fill the gap. Previously, Sub-Saharan Africa’s top six bilateral creditors included France, China, the US, Japan, Saudi Arabia, and Kuwait, but China now leads by a wide margin.
The debt-to-GDP ratio, a key indicator of a country’s debt sustainability, has become a concern for many nations in the region. High debt-to-GDP ratios are perceived as risky by foreign investors, leading to higher interest rates on future loans.
This, in turn, increases the cost of debt servicing, potentially trapping countries in a cycle of borrowing to repay existing debts.
Furthermore, lower government spending on essential services: When a large amount of a government’s budget is dedicated to debt service, less money is available for key sectors such as healthcare, education, and infrastructure development.
With that said, here are the 10 Sub-Saharan African countries with the largest debt as a percentage of their GDP, according to the Africa Pulse report.
Top 10 African countries with the largest government debts in mid-2024
| Rank | Country | General government debt (% of GDP) |
|---|---|---|
| 1. | Eritrea | 210.6% |
| 2. | Sudan | 146.5% |
| 3. | Zambia | 107.5% |
| 4. | Cabo Verde | 107.1% |
| 5. | Mozambique | 97.5% |
| 6. | Congo | 94.7% |
| 7. | Zimbabwe | 87.2% |
| 8. | Malawi | 85.4% |
| 9. | Ghana | 82.4% |
| 10. | Mauritius | 79.1% |
