Africa's external debt levels continue to rise, with a few countries shouldering the majority of the burden. According to a report by Afreximbank Research, the top 10 African countries with the highest percentage of Africa's debt hold a staggering 69% of the continent's total external debt stock. South Africa tops the list, accounting for 14% of Africa's debt, followed closely by Egypt with 13%.

The report, titled "African Debt Outlook: A Ray of Optimism," highlights the slow development of local financial systems and high interest rates as key contributors to Africa's high external debt levels. The increasing demand for foreign money to finance imports has driven external indebtedness, with reliance on aid, concessional loans from multilateral institutions, and competitive interest rates from private creditors.

The same report reveals that Africa's public debt-to-GDP ratio is lower than other regions, and recent initiatives suggest that the continent is making significant strides in stabilizing its debt profile. A projected decline in debt levels is expected by 2027-2028, fueled by favorable macroeconomic conditions, improved fiscal management, and enhanced access to capital markets.

However, until then, Africa's increasing debt is set to continue on an upward trajectory. Since 2008, the external debt of African countries has escalated significantly, reaching approximately US$ 1.16 trillion and representing 60% of the region's total public debt stock as of 2023. Projections indicate a slight increase to US$ 1.17 trillion in 2024, with sustained growth anticipated, potentially reaching US$ 1.29 trillion by 2028.

The top 10 countries with the highest percentage of Africa's debt are: South Africa (14%), Egypt (13%), Nigeria (8%), Morocco (6%), Mozambique (6%), Angola (5%), Kenya (4%), Ghana (4%), Côte d'Ivoire (3%), and Senegal (3%). These countries' debt levels are expected to continue growing, with significant implications for their economies and the continent as a whole.

The report's findings underscore the need for African countries to adopt sustainable debt management strategies and diversify their funding sources to reduce their reliance on foreign aid and loans. As the continent's debt burden continues to grow, it is essential for policymakers and stakeholders to work together to address the root causes of Africa's debt crisis and ensure a more stable economic future.

In conclusion, the report by Afreximbank Research sheds light on the pressing issue of Africa's growing external debt and highlights the need for urgent action to address the continent's debt crisis. As the top 10 countries with the highest percentage of Africa's debt continue to shoulder the burden, it is crucial for African countries to work together to develop sustainable debt management strategies and ensure a more stable economic future for the continent.