Fiscal balance reflects the gap between what a government earns and what it spends. A negative figure means a deficit. When countries succeed in reducing that gap, it can ease pressure on public debt and attract more investor confidence.
Throughout the past few years, fiscal deficits in Africa widened due to shocks like the COVID-19 pandemic, Russia’s war in Ukraine, and rising global interest rates.
However, in the latest report by the African Development Bank, several countries are now cutting their deficits significantly. In North, East, and West Africa, new policies are beginning to show results.
This ranking highlights the ten African countries that made the most progress in narrowing their fiscal deficits, based on AfDB data for 2025.
Rankings of Top 10 African Countries by Fiscal Balance Improvement (2025)
| Rank | Country | Fiscal Balance Change (% of GDP) |
|---|---|---|
|
1 |
Algeria |
-10.6 |
|
2 |
Senegal |
-7.8 |
|
3 |
Malawi |
-7.6 |
|
4 |
Egypt |
-5.7 |
|
5 |
Mauritius |
-5.6 |
|
6 |
Tunisia |
-5.2 |
|
7 |
Burkina Faso |
-5.1 |
|
8 |
Uganda |
-5.0 |
|
9 |
Kenya |
-4.7 |
|
10 |
Mozambique |
-4.3 |
Algeria leads the continent with the most significant improvement in fiscal balance, narrowing its deficit by over 10 percentage points. This is likely linked to strong performance in the energy sector and firm expenditure controls.
Senegal and Malawi follow, each cutting their fiscal gaps by more than 7 percentage points. These gains may reflect fiscal consolidation measures and policy reforms to stabilize public finances.
In North Africa, Egypt, Mauritius, and Tunisia all recorded marked improvements. The shift points to better tax policies, subsidy reforms, or higher export revenues.
Burkina Faso, Uganda, and Kenya also made progress, despite ongoing economic challenges and rising public needs. Their positions on the list suggest a stronger push to balance budgets.
Mozambique rounds out the top 10, continuing its recovery efforts amid debt restructuring and new investments.
Across these countries, improved fiscal balances are a positive sign. They offer governments more room to invest in infrastructure, health, and education without relying as heavily on debt. However, sustaining this trend will depend on continued reforms and global economic stability.
As of 2025, these fiscal improvements are a key story in Africa’s economic outlook, one that could shape debt management and development for years to come.
