Africa faces major economic challenges in 2024, with many countries struggling under the weight of insurmountable debts. The causes for this situation are diverse, ranging from excessive borrowing and poor economic management to unstable political environments and volatile commodity prices. These factors have contributed to several African nations being among the most indebted on the continent.
Among the most indebted African countries in 2024, Eritrea tops the list, with debt significantly exceeding its annual gross domestic product. Next up is Sudan, which is struggling, facing problems of famine, political instability and economic difficulties that have increased its financial burden. Zambia, meanwhile, is in financial distress due to heavy borrowing for infrastructure projects, particularly from external sources.
Cape Verde, a tourism-dependent island nation in the central Atlantic Ocean, has seen its debt surge due to borrowing during the COVID-19 pandemic. Mozambique is also heavily indebted, partly due to the “hidden debt” scandal and excessive government spending.
The Republic of Congo, heavily dependent on oil revenues and subject to volatile oil prices, is also in debt distress. Zimbabwe, after years of hyperinflation, currency devaluation, and economic mismanagement, is struggling to repay its debt.
Malawi, an island nation in southern Africa, stands out for its debt problems related to its dependence on foreign aid and an unstable agricultural sector. Ghana, West Africa’s second most populous country, continues to struggle with high levels of debt, compounded by inflation and currency depreciation despite its economic reforms.
Finally, Mauritius, an island nation in the Indian Ocean off the eastern coast of Africa, has seen its debt increase due to the economic consequences of the COVID-19 pandemic, particularly in the tourism sector.
In the face of these major financial challenges, it is imperative that the governments of these countries take urgent action to stabilize their economies, improve debt management, and promote sustainable economic development. International partnerships and domestic reform efforts will be essential to help these nations overcome their financial difficulties and move toward a more stable and prosperous future.