Nigeria is one of the 10 African countries that together account for 69% of the continent’s total external debt, according to a report by the Africa Export and Import Bank (Afreximbank).
The report, titled African Debt Outlook: A Ray of Optimism, highlights that Africa’s external debt remains high due to underdeveloped local financial markets and high interest rates.
“In the first half of 2024, 10 African nations held 69% of the continent’s total external debt stock, up from 67% in 2023,” the report stated.
The countries with the highest debt are:
South Africa (14%)
Egypt (13%)
Nigeria (8%)
Morocco (6%)
Mozambique (6%)
Angola (5%)
Kenya (4%)
Ghana (4%)
Côte d’Ivoire (3%)
Senegal (3%)
The report explains that the rising demand for foreign exchange to pay for imports has worsened the debt situation. Many African countries depend on aid, concessional loans from global financial institutions, and loans from private lenders at competitive rates.
Since 2008, Africa’s external debt has grown significantly, reaching about $1.16 trillion in 2023, which is 60% of the continent’s total public debt. It is expected to rise slightly to $1.17 trillion in 2024 and could reach $1.29 trillion by 2028.
