Africa’s total external debt is projected to exceed $1.3 trillion by 2025, rising steadily through 2029, though at a slower pace than the rapid climb seen between 2016 and 2022.
Afreximbank’s latest half-year report suggests the continent’s debt path is beginning to stabilise, thanks to shifting global financial conditions and more cautious fiscal policies.
South Africa, Egypt, and Nigeria account for over one-third of Africa’s external debt, with Morocco, Mozambique, Sudan, and Kenya also featuring prominently.
Smaller economies collectively hold more than 30 percent of the burden.
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While debt remains high, the outlook offers some reassurance as it projects that Africa’s debt-to-GDP ratio is forecast to decline by 2028, aided by improved growth and longer-term borrowing strategies.
Nonetheless, challenges persist, with elevated borrowing costs, growing private sector exposure, and sovereign risk remaining key concerns for the continent’s financial stability.
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