The foreign exchange reserves that a nation has, measured in terms of the number of months it can continue to pay for imports without needing outside assistance, is referred to as import cover. This is why import cover is an important metric to assess the health of an economy. This is more so considering that Africa can be very susceptible to external shocks and changes in the global market.
A high amount of import coverage acts as a buffer against economic volatility. It sends a message to investors, creditors, and foreign trade partners that the government is capable of upholding its international responsibilities, especially during times of economic hardship.
This confidence can attract foreign direct investment (FDI) and enhance the country’s credit rating, lowering borrowing costs and allowing for more affordable funding for development projects.
A strong import cover is critical for African economies, which are especially vulnerable to commodity price changes, political instability, and external debt pressures.
However, not every African state can boast of a substantial import cover.
According to Afreximbank’s African Trade Report 2024: continued capital inflows, fueled by greenfield projects, global and regional development financing organizations, and bilateral partners, as well as increased tourist arrivals and remittances, helped bolster the continent’s reserve position.
These developments contributed to an increase in Africa’s average import cover to 5 months in 2023, up from 4.7 months in 2022, and beyond the IMF criterion of 3 months.
While many countries on the continent confidently boasts import covers of over 3 months, some fall well short.
With that said, here are the 10 African countries with the least amount of months of import cover.
Top 10 African countries with the weakest import cover
| Rank | Country | Months of import cover |
|---|---|---|
|
1. |
Zimbabwe |
0.3 |
|
2. |
Ethiopia |
0.3 |
|
3. |
Sudan |
0.4 |
|
4. |
Burundi |
0.7 |
|
5. |
Burkina Faso |
0.9 |
|
6. |
Congo Republic |
1.2 |
|
7. |
Djibouti |
1.4 |
|
8. |
Chad |
1.7 |
|
9. |
Democratic Republic of Congo |
1.7 |
|
10. |
Malawi |
1.7 |
