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The Africa Export and Import Bank (Afreximbank) has reported that Nigeria is among the 10 African nations that collectively represent 69 percent of the continent's total external debt.
In its recent publication named ‘African Debt Outlook: A Ray of Optimism,’ Afreximbank noted that external debt levels in Africa remain high, largely due to the underdeveloped domestic financial markets and elevated interest rates.
The bank also pointed out the challenges and opportunities that African countries face in managing their debt.
“In the first half of 2024, 10 African countries accounted for 69 percent of the total external debt stock on the continent, an increase from 67 percent in 2023,” the report states.
“The leading countries are South Africa (14%), Egypt (13%), Nigeria (8%), Morocco (6%), Mozambique (6%), Angola (5%), Kenya (4%), Ghana (4%), Côte d'Ivoire (3%), and Senegal (3%).
“The rising need for foreign exchange to cover imports has further intensified external debt levels, driven by dependence on aid, concessional loans from multilateral institutions, and competitive rates from private lenders.
“Since 2008, the external debt of African nations has surged considerably, reaching about US$ 1.16 trillion and comprising 60 percent of the region's total public debt stock as of 2023. Forecasts suggest a modest rise to US$ 1.17 trillion in 2024, with continued growth expected, possibly soaring to US$ 1.29 trillion by 2028.
