Top 10 African Countries with Highest Foreign Debts 2025 | USAEMALL.com

According to a report released by the African Development Bank Group at its 2024 annual general meeting, Africa’s total external debt stood at $1.152 trillion by the end of 2023. Experts say the figure could hit $1.2 trillion by the 2025 meeting.

The issue of foreign debts has become a crucial one in the continent, which Economists say if not checked can cripple the economy of Africa. Critics have continued to make their voices heard that African leaders need to reduce their dependency on foreign loans to fund budgets, especially as a large percentage of these loans goes into repaying debts.

As of 2024, Africa’s foreign debt accounted for 24.5% of the continent’s GDP, with individual countries having rates that are far higher. This brings us to the issue of accurate data, one of the biggest challenges to Africa’s debt accountability.

African countries struggle with data and statistics on their debt obligations, and experts say this has been a major channel of exploitation for many decades. Many African nations do not take the pains of calculating the risks associated with their foreign loans, documenting their repayments, and seeking appropriate reliefs as and when due.

It is common to see listings on foreign debts of African countries with conflicting data. This is due to the focus on independent international lenders for data and debt statistics.

In this article, African Exponent provides the most accurate data on African countries and their foreign debt, by combining data from the International Monetary Fund (IMF), the World Bank, and China – which are the major international lenders.

We have also taken a step further to explain debt ratio and highlight the countries with the highest debt ratio in Africa – often also mistaken for the countries with the highest foreign debts.

Here are the top 10 African countries with the highest foreign debt 2025.

1. Angola: With a population of just over 36.68 million people in 2023, the country located on the west central coast of southern Africa has surprised many with its debt figures. Despite the unavailability of data to adequately determine its total debt to the World Bank, Angola still has a debt of over $23.99 billion to China and the IMF.
2. Kenya: The East African nation has a debt obligation of about $6.7 billion to China, $12 billion to the World Bank and about $3 billion to the IMF. The estimated total of about $21.78 billion makes it the second most foreign-indebted African country.
3. Nigeria: Africa’s most populous nation is hardly mentioned on the top five list of highest debtors, this is because its debt obligation to the IMF sits at $613 million. Also, its high population also gives it a good position on the debt ratio list. However, with a staggering $16.5 billion owed to the World Bank and $4.3 billion to China, the estimated total of $21.41 billion is impossible to ignore.
4. Ethiopia: Despite being one of Africa’s most admired countries, Ethiopia has a total estimated debt obligation of $20.31 billion to the IMF, World Bank, and China alone. With its obligation to the World Bank sitting at $12.2 billion and $6.8 billion to China.
5. Egypt: Egypt has a debt of $9.45 billion to the IMF and $7.9 billion to China. Its loans from the World Bank sit at about $7.9 million only, but the estimated total of approximately $15.5 billion brings it to fifth on our list.
6. Tanzania: Although the majority of China’s funding in Tanzania comes as Foreign Direct Investment, its debt obligation to the World Bank at $11.7 billion and about $1 billion to the IMF takes its total to an estimated $12.454 billion, making it sixth on our list.
7. Ghana: The West African country became famous a few years ago for the comments by its outgoing president, Nana Akufo-Addo, criticizing foreign aid. The country owes the IMF $2.25 billion, $6.7 billion to the World Bank, and $1.9 billion to China. With an estimated total of $15 billion, Ghana sits seventh on our list.
8. Zambia: For its size, a population of 17.35 million people, Zambia’s debt of $6.1 billion to China, $2.1 billion to the World Bank, and $1.3 billion to the IMF should raise concern. The estimated total of $9.5 billion makes it eighth on our list.
9. Uganda: Over the years, Uganda has been known for its strict reaction to foreign policies, notably the gay rights bill. However, its foreign debt of about $7.2 billion drags the landlocked Eastern African country to ninth on our list. Its debt to the World Bank sits at $4.8 billion to the World Bank and $1.6 billion to China. Its debt to the IMF is about $754 million.
10. Cote d’Ivoire: French-speaking African countries depend majorly on France and hence do not have high loan obligations to the IMF, the World Bank and even China. However, with a loan of $3.9 billion from China, $2.1 billion from the IMF and about $1 billion from the World Bank, Cote d’Ivoire sits tenth on our list.

Meaning of Debt Ratio and African Countries with Highest Debt Ratio

In the context of African debts and loan obligations, the debt ratio refers to the percentage of a country’s debt to its population and GDP.

Hence, countries with low populations and GDP tend to come top of the list when the debt ratio is calculated. However, contrary to what is wildly publicized, countries with the highest debt ratio do not necessarily mean they are the countries with the highest debt obligations.

Here are the top ten countries based on debt ratio.

1. Eritrea (210.6% of GDP): Eritrea has the highest debt-to-GDP ratio in Africa, with its total debt far surpassing the nation’s yearly economic production.
2. Sudan (146.5% of GDP): Located in Northeast Africa, Sudan faces severe challenges, including famine, political instability, and economic turmoil, resulting in one of the continent’s most substantial debt burdens.
3. Zambia (107.5% of GDP): Zambia’s debt distress stems from extensive external borrowing, much of which was used to finance large-scale infrastructure projects.
4. Cape Verde (107.1% of GDP): The debt in Cape Verde, a tourism-dependent island nation in the Atlantic, surged due to extensive borrowing during the COVID-19 pandemic.
5. Mozambique (97.5% of GDP): Mozambique’s debt issues are linked to the “hidden debt” scandal as well as government expenditure.
6. Republic of the Congo (94.7% of GDP): The Republic of the Congo has a significant debt load, heavily influenced by its dependence on oil revenue and the fluctuating nature of global oil prices.
7. Zimbabwe (87.2% of GDP): Zimbabwe’s debt crisis is the result of prolonged economic mismanagement, hyperinflation, and currency devaluation.
8. Malawi (85.4% of GDP): Malawi, a landlocked nation in southeastern Africa characterized by the Great Rift Valley and Lake Malawi, struggles with debt due to its reliance on foreign aid and challenges in the agricultural sector.
9. Ghana (82.4% of GDP): As West Africa’s second most populous country, Ghana faces a growing debt burden amid economic pressures on its approximately 35 million residents.
10. Mauritius (79.1% of GDP): Mauritius, an island nation in the Indian Ocean east of Madagascar, has seen its debt rise due to the pandemic’s economic toll, particularly on its tourism-dependent economy.

Conclusion

Africa has a data challenge, and this has been made worse by the decision of many African leaders to secure ‘secret’ loans without releasing details of the terms of such loans to the general public.

In the same vein, loans hidden under the guise of Foreign Direct Investment (FDI), resources swaps and market entry/monopoly continue to cripple African economies. It has also made it somewhat impossible to get the actual status and data of African external and domestic loans.

The loan and debt status of countries changes without notice as there are no data updates, calendars or timelines that ensure adequate tracking of loans, reliefs and repayment. However, as the continent continues to progress, more leaders are beginning to reduce foreign loan dependency and looking inward to internally generated revenue – which critics say is the best option for sustainable development.