Africa is no longer the debt-laden continent often portrayed by Western media over the years. In fact, the continent is showing resilience in managing its public finances despite global challenges.
According to the International Monetary Fund (IMF), global debt reached an all-time high of $303 trillion in 2021, a significant rise from the previous record of $226 trillion in 2020, marking the largest annual increase since the Second World War. Most of this surge was concentrated in developed nations such as the United States, Japan, the United Kingdom, and France. Emerging economies like China, India, and Brazil also saw considerable debt growth.
Maintaining low levels of government debt is crucial for countries seeking to strengthen their economies, improve living standards, and attract foreign investment. Nations with lower debt burdens often enjoy stronger currencies, greater investor confidence, and other financial advantages.
The World Bank’s Africa Pulse report, published in October 2024, emphasised the importance of prudent debt management. Since 2006, public debt levels in sub-Saharan Africa have risen dramatically, raising concerns. However, some African countries have managed to avoid unsustainable debt levels by keeping their debt in check relative to their economic output.
A lower debt-to-GDP ratio indicates a country’s ability to manage its debt while continuing to grow its economy. Several African nations have successfully achieved this balance, attracting more foreign investment, increasing financial stability, and improving public services.
Here are the African countries with the lowest levels of government debt as of mid-2024:
- Democratic Republic of Congo
General government debt (% of GDP): 21.7%
Rank: 1
- Botswana
General government debt (% of GDP): 24.5%
Rank: 2
- Equatorial Guinea
General government debt (% of GDP): 35.3%
Rank: 3
- Ethiopia
General government debt (% of GDP): 36.3%
Rank: 4
- Comoros
General government debt (% of GDP): 39.1%
Rank: 5
- Eswatini
General government debt (% of GDP): 39.7%
Rank: 6
- Chad
General government debt (% of GDP): 41.4%
Rank: 7
- Guinea
General government debt (% of GDP): 42.1%
Rank: 8
- Sierra Leone
General government debt (% of GDP): 43.1%
Rank: 9
- South Sudan
General government debt (% of GDP): 43.3%
Rank: 10
African leaders must remain vigilant in managing public debt as their economies grow. By avoiding excessive debt levels, African nations can create a more stable and sustainable economic environment, benefiting their citizens and fostering long-term development.
