A recent report by the World Bank has sounded the alarm on the escalating government debt in Sub-Saharan Africa, with the region's external public and publicly guaranteed debt quadrupling since 2006 to reach a staggering $462 billion in 2022.

The top 10 African countries with the largest government debt as a percentage of their GDP have been revealed, with Eritrea topping the list at a whopping 210.6%. Other countries struggling with high debt-to-GDP ratios include Sudan, Zambia, and Mozambique.

This surge in government debt poses significant economic challenges, including currency depreciation, loss of investor confidence, and reduced government spending on essential services such as healthcare, education, and infrastructure development.

The report highlights the shift in bilateral creditors, with China now leading the way, and the decline of Paris Club creditors from 22% to 5% of foreign debt in Sub-Saharan African countries between 2006 and 2022.

For startups and entrepreneurs operating in these economies, the implications are far-reaching. High government debt can lead to higher interest rates, reduced access to credit, and a more challenging business environment.