Top 10 African countries with the smallest government debt mid-2024

While some countries in the region have accumulated large debt, others have made efforts to keep their debt levels low.

The Africa Pulse report by the World Bank, released in October 2024, sheds light on the importance of keeping government debt manageable. Sub-Saharan Africa’s public and publicly guaranteed (PPG) debt has quadrupled since 2006, rising from US$108 billion to US$462 billion in 2022.

While this may sound concerning, some countries have managed to avoid spiraling debt levels, benefiting from low debt-to-GDP ratios.

Primarily, countries with little debt are less likely to experience complex problems within their economy. For example, a low debt burden could bolster currency strength which in turn, helps reduce inflation and makes essential commodities such as food and gasoline cheap.

Additionally, foreign investors prefer to invest in nations with low debt-to-GDP ratios because they are perceived as less hazardous.

Low debt levels also allow governments to devote more of their budgets to essential areas such as healthcare, education, and infrastructure.

One important measure of a nation’s debt sustainability is its debt-to-GDP ratio. A lower ratio indicates a nation’s capacity to control its debt while sustaining robust economic expansion.

Successfully maintaining low debt-to-GDP ratios has allowed several African countries to benefit from increased FDI, more fiscal flexibility, and improved public services.

On the other hand, nations with high debt ratios are frequently compelled to take out further loans, which leads to a vicious cycle of debt dependence.

With that said, here are the top 10 African countries that have placed themselves in an advantageous position when it comes to its debt service.