Africa's external debt has reached a staggering $1.2 trillion, making up nearly 60% of its total public debt, according to Afreximbank. However, amidst this growing debt crisis, some African countries have managed to keep their external debt relatively low. A recent report by Global Firepower has revealed the top 10 African countries with the lowest external debt in 2025, with Eritrea ranking first with a debt of $635.5 million, followed closely by the Central African Republic and Liberia.

The report highlights the significant disparity in external debt among African countries, with Egypt having the highest external debt in Africa, standing at $103.75 billion, and South Africa following closely in second place with $58.77 billion. This growing external debt raises concerns about the ability of African countries to repay their debts, especially in the face of unpredictable commodity prices, political instability, and climate-related disasters.

Over the past 15 years, Africa's external debt has more than doubled, increasing from 18.8% of GDP in 2008 to 41.6% in 2023. This trend is alarming, as it may lead to a debt crisis that could have far-reaching consequences for the continent's economy. Many governments rely on loans to fund infrastructure and development projects, but this growing debt burden may hinder their ability to invest in critical sectors such as education, healthcare, and entrepreneurship.

The top 10 African countries with the lowest external debt in 2025 are Eritrea, Central African Republic, Liberia, Botswana, Chad, South Sudan, Sierra Leone, Madagascar, Burkina Faso, and Mali. These countries have managed to keep their external debt relatively low, despite the challenges posed by the COVID-19 pandemic, climate change, and other external factors.

The implications of Africa's growing external debt are far-reaching, with potential consequences for economic growth, poverty reduction, and entrepreneurship. As the continent continues to grapple with this debt crisis, it is essential for governments, international organizations, and the private sector to work together to find sustainable solutions that promote economic development and reduce the debt burden.

In conclusion, the report by Global Firepower provides a timely reminder of the need for African countries to adopt sustainable debt management strategies that promote economic growth and reduce the risk of debt distress. As the continent continues to evolve, it is essential to prioritize debt sustainability and promote entrepreneurship, innovation, and economic development.