A recent report by Global Firepower has shed light on the alarming state of external debt in Africa, with Egypt topping the list of countries with the highest external debt, standing at a staggering $103.75 billion. This figure ranks Egypt 50th globally in terms of external debt. The report, which tracks external debt as part of its annual defence review, provides a stark reminder of the continent's growing reliance on external borrowing.

The list of top 10 African countries with the highest external debt in 2025 also includes South Africa, Angola, Morocco, Sudan, Nigeria, Kenya, Tunisia, Ethiopia, and Ghana. These countries are carrying a disproportionately large debt burden, with 67% of the continent's external debt held by just these 10 countries, according to Afreximbank.

The report highlights the concerning trend of rising external debt in Africa, which has more than doubled over the past 15 years. In 2023, the region's external debt reached US$1.2 trillion, making up nearly 60% of its total public debt. This surge in debt has led to many African countries spending more on debt repayment than on critical sectors such as healthcare, education, and infrastructure.

Experts warn that high levels of external debt can have severe consequences for African economies, including reduced credit ratings, increased borrowing costs, and decreased investor confidence. Furthermore, the concentration of debt in just a few countries makes them more vulnerable to debt payment spikes, which can have far-reaching implications for the entire continent.

The report's findings underscore the need for African countries to adopt sustainable debt management strategies and prioritize climate-resilient business models. As the continent continues to grapple with the challenges of debt, it is essential for governments, startups, and venture capitalists to work together to develop innovative solutions that promote economic growth and reduce reliance on external borrowing.

In conclusion, the report by Global Firepower serves as a timely reminder of the pressing issue of external debt in Africa. As the continent continues to navigate the complexities of economic development, it is crucial for stakeholders to prioritize sustainable debt management and work towards creating a more resilient and prosperous Africa for all.