BUSINESS DAY
Many African countries are struggling with debt levels, as reflected in their debt-to-GDP ratios. This crucial metric shows the extent of national debt compared to economic output and paints a worrying picture of the continent’s financial health.
The high debt burdens are not just numbers—they translate into real challenges, from struggling to fund essential services to limiting investments in vital infrastructure. For many of these nations, the effects of the COVID-19 pandemic and global economic uncertainties still continue to echo, deepening the crisis in 2025.
According to the International Monetary Fund (IMF), Here are the top 10 Africa’s most indebted countries in 2025
Cabo Verde leads the list with a debt-to-GDP ratio of 107.21%. The island nation has faced economic challenges exacerbated by the COVID-19 pandemic, leading to increased borrowing to support its economy.
Mozambique, with a ratio of 96.47%, continues to deal with the aftermath of a significant debt crisis that began in 2016. Despite efforts to restructure its debt, economic recovery remains hindered by both internal and external factors.
The Republic of Congo follows closely with an 89.04% ratio, primarily driven by its heavy reliance on oil exports. Fluctuating oil prices have posed challenges for the nation, necessitating diversification of its economy.
Malawi, at 82.28%, faces ongoing economic difficulties despite some progress in development. The country must navigate fiscal management while investing in essential sectors.
Mauritius, known for its financial services and tourism, has a debt-to-GDP ratio of 80.94%. The government is tasked with balancing economic growth and rising debt levels.
Senegal’s ratio stands at 80.48%, reflecting the need for effective fiscal policies to manage its growing debt while pursuing sustainable development.
Burundi, with a ratio of 80.36%, continues to face economic challenges that hinder its growth prospects and exacerbate its debt situation.
Gabon reports a 79.96% ratio, where reliance on oil revenues has made the economy vulnerable to price fluctuations, necessitating strategic reforms for stability.
Ghana, at 79.51%, has seen its debt levels rise due to high fiscal deficits and external borrowing requirements, prompting calls for prudent fiscal management.
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