External debt remains a major concern for African economies, influencing financial stability and affecting the ability of nations to fund essential services. The increasing debt burden has placed immense pressure on national budgets, escalating reliance on international lenders and potentially limiting future economic growth.
Afreximbank reported that in 2023, approximately 67% of Africa’s external debt was concentrated in just ten countries. Before the pandemic, over 30 African nations were spending more on debt repayments than on healthcare, underscoring the pressing need for sustainable debt management. While borrowing is essential for financing infrastructure and other critical sectors, maintaining a balance between debt and economic stability is crucial.
According to Global Firepower, here are the top 10 African countries with the largest external debt in 2025:
1. Egypt – $103.75 Billion
Egypt leads the continent with an external debt of $103.75 billion. The country’s borrowing is largely tied to financing large-scale infrastructure projects and supporting its economic policies.
2. South Africa – $58.77 Billion
With external debt reaching $58.77 billion, South Africa ranks second. The country relies on international financing to support industries such as energy and manufacturing, helping sustain economic growth.
3. Angola – $45.77 Billion
Angola follows closely with $45.77 billion in external debt. Much of this debt is linked to loans acquired to develop its oil and gas industry, which serves as a major pillar of the nation’s economy.
4. Morocco – $45.64 Billion
Morocco’s external debt stands at $45.64 billion, placing it fourth. The country has been leveraging international borrowing to invest in renewable energy and urban development projects.
5. Sudan – $37.84 Billion
Sudan holds an external debt of $37.84 billion. Political instability and persistent economic challenges have increased the nation’s dependence on external loans.
6. Nigeria – $32.46 Billion
Nigeria ranks sixth with $32.46 billion in external debt. The country’s borrowing reflects efforts to finance infrastructure development and address economic shortfalls.
7. Kenya – $30.51 Billion
Kenya’s external debt has climbed to $30.51 billion. The country has heavily borrowed to modernize infrastructure and enhance trade, positioning itself as a regional economic hub.
8. Tunisia – $27.08 Billion
With an external debt of $27.08 billion, Tunisia continues to rely on international financing to support economic recovery and maintain public services.
9. Ethiopia – $25.76 Billion
Ethiopia’s external debt stands at $25.76 billion. The country has focused its borrowing on infrastructure development, particularly in transportation and energy.
10. Ghana – $22.55 Billion
Ghana rounds out the list with an external debt of $22.55 billion. Borrowing has been directed toward infrastructure improvements and public service management.
The Debt Dilemma: What Lies Ahead?
While external debt can play a significant role in advancing development, mismanagement or excessive borrowing can lead to economic instability. African governments must prioritize sustainable debt policies, ensuring that borrowed funds contribute to long-term economic growth rather than deepening financial woes.
With global economic uncertainties and rising interest rates, maintaining a delicate balance between borrowing and economic resilience is more important than ever. The path forward will require strategic planning, prudent financial management, and investment in revenue-generating sectors to reduce over-reliance on external debt.
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