In recent years, general government debt has become a growing concern for many African nations. From rising fiscal deficits and currency devaluation to the lingering effects of the COVID-19 pandemic, multiple factors have contributed to a sharp rise in borrowing across the continent. With global interest rates climbing and revenues falling short, governments are increasingly relying on debt to fund development, pay salaries, and service existing loans.
While debt can be a useful instrument for driving economic growth, the rapid year-on-year increase in government debt is triggering alarm bells about long-term sustainability, economic resilience, and public welfare in many African nations.
According to the Africa Pulse report by the World Bank, here are the top 10 African countries with the highest increase in general government debt (measured as a percentage of GDP) between 2024 and 2025.
🔟 Top 10 Countries with the Highest Leap in Government Debt (% of GDP)
| Rank | Country | Debt in 2025 | Debt in 2024 | Increase |
|---|---|---|---|---|
| 1 | South Sudan | 55.6% | 46.0% | +9.6% |
| 2 | Gabon | 80.2% | 72.5% | +7.7% |
| 3 | Rwanda | 84.8% | 78.8% | +6.0% |
| 4 | Ethiopia | 28.4% | 22.6% | +5.8% |
| 5 | Botswana | 39.7% | 35.3% | +4.4% |
| 6 | Democratic Republic of Congo | 26.0% | 22.1% | +3.9% |
| 7 | Mozambique | 96.8% | 94.2% | +2.6% |
| 8 | South Africa | 78.8% | 76.3% | +2.5% |
| 9 | Nigeria | 55.5% | 53.3% | +2.2% |
| 10 | Madagascar | 53.3% | 51.3% | +2.0% |
📉 What’s Driving the Surge?
Several core issues have pushed these debt levels higher:
- Persistent budget deficits and overdependence on imports
- Currency devaluation, increasing external debt burdens
- High global interest rates, raising borrowing costs
- Debt servicing challenges, especially in countries like Nigeria and Zambia
- Increased public spending to boost infrastructure, pay civil servants, or subsidize fuel and utilities
While countries like Ghana, Kenya, and Egypt also face high debt burdens, the rate of increase in 2025 was highest in the 10 countries listed above, with South Sudan leading the pack.
🚨 Why This Matters
Mounting government debt affects more than just economic indicators—it has real consequences:
- Reduced investor confidence and increased risk premiums
- Lower foreign direct investment (FDI) due to fiscal instability
- Less funding for essential services like healthcare, education, and infrastructure
- Increased inflation risks when governments rely on central bank financing
- Currency vulnerability due to speculative market pressures
⚠️ The Way Forward
For many African governments, effective debt management is now more critical than ever. Transparent fiscal planning, revenue diversification, and cautious borrowing strategies are essential to avoid falling into a cycle of austerity, economic stagnation, or default.
As the region continues to recover from global economic shocks, careful handling of public debt will determine the path forward—toward sustainable growth or further financial instability.
