Africa's Debt Crisis: Top 10 Countries with Highest Debt-to-GDP Ratio in 2025

Taylor Brooks

Taylor Brooks

January 13, 2025 · 3 min read
Africa's Debt Crisis: Top 10 Countries with Highest Debt-to-GDP Ratio in 2025

African countries are grappling with escalating debt profiles, resulting in high debt-to-GDP ratios that raise concerns about economic stability and growth potential. According to the International Monetary Fund (IMF), the top 10 African countries with the highest debt-to-GDP ratios in 2025 are Sudan, Cape Verde, Mozambique, Republic of Congo, Egypt, Malawi, Mauritius, Senegal, Burundi, and Gabon.

The debt-to-GDP ratio measures the proportion of a nation's debt relative to its Gross Domestic Product (GDP), serving as a vital indicator of a country's capacity to manage its debt and fulfill financial obligations. In many African nations, the scale and structure of debt have reached unsustainable levels, sparking concerns about economic stability and growth potential.

Africa's rapidly expanding population intensifies the demand for essential services such as education, healthcare, and infrastructure. However, these critical needs often surpass the pace of economic growth, compelling governments to rely heavily on borrowing to address immediate challenges. Borrowing serves as an essential mechanism for financing development, but in many African nations, the scale and structure of debt have reached unsustainable levels.

The impact of high debt-to-GDP ratios differs between developed and African countries due to key economic, structural, and financial factors. Developed nations benefit from stable institutions, strong currencies, diverse economies, and favorable borrowing conditions, making high debt levels more manageable. In contrast, African countries face higher borrowing costs, economic vulnerabilities, and governance challenges, making even moderate debt levels more burdensome.

For comparison, data from the IMF reveals that the debt-to-GDP ratio in well-developed nations such as the United States (124.1%) and Canada (103.2%) also exceed 100%. However, the significant debt-to-GDP ratios of these African nations highlight a concerning picture of the continent's financial health.

According to the IMF, the latest debt-to-GDP ratios for the top 10 African countries are as follows: Sudan (237.10%), Cape Verde (107.20%), Mozambique (96.50%), Republic of Congo (89.40%), Egypt (84.50%), Malawi (82.30%), Mauritius (80.90%), Senegal (80.50%), Burundi (80.40%), and Gabon (79.90%).

The high debt-to-GDP ratios in these African countries raise concerns about economic stability and growth potential. As the continent's population continues to grow, it is essential for governments to adopt sustainable debt management strategies to ensure long-term economic growth and stability.

In conclusion, the high debt-to-GDP ratios in African countries highlight the need for sustainable debt management strategies and economic reforms to ensure long-term growth and stability. As the continent continues to navigate the challenges of economic development, it is crucial for governments to prioritize fiscal discipline and adopt policies that promote economic growth and stability.

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