Top Most Indebted African Countries

As Africa navigates through 2025, many countries are grappling with staggering debt levels. These debts, often measured by the debt-to-GDP ratio, highlight the financial strains and challenges that several African nations face. This critical metric indicates how much a country owes compared to what it produces, painting a picture of economic vulnerability.

Rising Debt and Economic Challenges

The high levels of debt in these countries are not mere figures; they represent real challenges. Governments find it difficult to fund essential services and invest in vital infrastructure. The lingering effects of the COVID-19 pandemic and global economic instability continue to exacerbate these issues, making debt management a significant concern in 2025.

What is Debt-to-GDP Ratio?

The debt-to-GDP ratio is a key indicator that shows the proportion of a country’s debt compared to its gross domestic product (GDP). A higher ratio suggests a greater burden on the economy, potentially limiting a country’s ability to borrow further and invest in development.

Listing of the Most Indebted African Countries

Here is a listing of the top most indebted African countries in 2025, as per the International Monetary Fund (IMF):

• Cabo Verde: With a debt-to-GDP ratio of 107.21%, Cabo Verde is leading the list. The island nation has been struggling economically, especially after the COVID-19 pandemic, which forced it to increase borrowing to stabilize its economy.
• Mozambique: At 96.47%, Mozambique is still dealing with the aftermath of a major debt crisis that began in 2016. Despite efforts to restructure its debt, both internal and external factors continue to hinder its economic recovery.
• Republic of Congo: With an 89.04% ratio, the Republic of Congo is heavily reliant on oil exports. Fluctuating oil prices have created economic challenges, highlighting the need for diversification.
• Malawi: The country has a debt-to-GDP ratio of 82.28%. Although there has been some progress in development, Malawi continues to face significant economic difficulties.
• Mauritius: Known for its financial services and tourism, Mauritius has a debt-to-GDP ratio of 80.94%. Balancing economic growth with rising debt levels remains a key challenge for the government.
• Senegal: With a ratio of 80.48%, Senegal needs effective fiscal policies to manage its growing debt while pursuing sustainable development.
• Burundi: At 80.36%, Burundi continues to struggle with economic challenges, which exacerbate its debt situation and hinder growth prospects.
• Gabon: Reporting a 79.96% debt-to-GDP ratio, Gabon’s reliance on oil revenues makes it vulnerable to price fluctuations, necessitating strategic economic reforms.
• Ghana: Ghana’s ratio stands at 79.51%. High fiscal deficits and external borrowing have pushed the country towards prudent fiscal management.
• South Africa: With a ratio of 77.40%, South Africa faces structural issues and political uncertainties, complicating its fiscal sustainability.

READ ALSO: 10 Countries In Africa With Highest Debt-to-GDP Ratio

Addressing the Debt Crisis

The financial situation of these countries underscores the need for strategic reforms and international support to manage and reduce debt levels. The IMF and other global institutions play a crucial role in helping these nations navigate their economic challenges while fostering sustainable growth.