Debt is a crucial tool for financing development, but the rapid increase in debt levels raises concerns about sustainability, economic growth, and public welfare. Countries like Ghana, Zambia, Kenya, and Egypt have experienced significant rises in debt, while Nigeria has seen a surge in its debt service-to-revenue ratio despite low debt-to-GDP ratios.
Governments continuously borrow to fund infrastructure, pay salaries, and service existing debts, diminishing their ability to manage new debt burdens effectively. This escalation in debt inevitably leads to higher interest payments, reducing funds available for essential sectors like education, healthcare, and infrastructure.
Moreover, mounting debt levels make currencies susceptible to speculative attacks, weakening purchasing power. Lack of transparency in debt management undermines investor confidence, leading to higher risk premiums, reduced foreign direct investment, and increased financial market volatility.
The escalating debt crisis in Africa, if left unchecked, could trigger a cycle of default, austerity measures, and underdevelopment. The World Bank’s Africa Pulse report highlights the top 10 African countries with the highest increase in general government debt from 2024 to 2025:
1. South Sudan: 55.6% (2025) / 46.0% (2024)
2. Gabon: 80.2% (2025) / 72.5% (2024)
3. Rwanda: 84.8% (2025) / 78.8% (2024)
4. Ethiopia: 28.4% (2025) / 22.6% (2024)
5. Botswana: 39.7% (2025) / 35.3% (2024)
6. Democratic Republic of Congo: 26.0% (2025) / 22.1% (2024)
7. Mozambique: 96.8% (2025) / 94.2% (2024)
8. South Africa: 78.8% (2025) / 76.3% (2024)
9. Nigeria: 55.5% (2025) / 53.3% (2024)
10. Madagascar: 53.3% (2025) / 51.3% (2024)
These figures underscore the challenges posed by increasing debt burdens across Africa and emphasize the need for prudent debt management to prevent a downward spiral of financial instability and economic stagnation.
