Top 10 African countries with the highest external debt

Debt, when managed well, isn’t necessarily a bad thing. It gives governments the ability to finance infrastructure, healthcare, education, and other critical sectors of the economy. However, the key is ensuring that the debt remains sustainable.

This is where many African countries run into trouble, as their debt levels have risen sharply over the past decade, with an increasing reliance on external borrowing.

According to Afreximbank, Africa’s debt is primarily external, with the region’s external debt reaching US$1.2 trillion by 2023, making up nearly 60% of its total public debt.

Over the past 15 years, this external debt has more than doubled, increasing from 18.8% of GDP in 2008 to 41.6% in 2023.

Before the pandemic, over 30 African countries were spending more on paying off debt than on healthcare, showing just how much debt is weighing on their budgets.

Also, the fact that most of Africa’s debt is concentrated in just a few countries makes the problem even worse.

According to Afreximbank, in 2023, 67% of the continent’s external debt was held by just 10 countries: Egypt, South Africa, Nigeria, Morocco, Mozambique, Angola, Kenya, Tunisia, Sudan, and Ghana. These countries are carrying a much bigger debt load compared to the rest, which makes them more vulnerable when debt payments spike.

A recent report by Global Firepower, which tracks external debt as part of its annual defence review, shows that Egypt has the highest external debt in Africa, standing at $103.75 billion, ranking 50th globally.

South Africa follows closely in second place with $58.77 billion, ranked 56th globally. Angola comes in third with $45.77 billion, ranked 65th worldwide.