Africa’s debt is primarily external, with the region’s external debt reaching US$1.2 trillion by 2023, making up nearly 60% of its total public debt. Eritrea ranks among the African countries with the lowest external debt, standing at $635.5 million and ranking 145th globally.
Debt is a big challenge for many African countries. While some nations are drowning in billions of dollars in external debt, others keep their borrowing relatively low.
Many governments rely on loans to fund infrastructure, and development projects, and keep their economies running. But this growing debt raises concerns, especially with unpredictable commodity prices, political instability, and climate-related disasters making repayment even harder.
According to Afreximbank, Africa’s debt is primarily external, with the region’s external debt reaching US$1.2 trillion by 2023, making up nearly 60% of its total public debt.
Over the past 15 years, this external debt has more than doubled, increasing from 18.8% of GDP in 2008 to 41.6% in 2023.
A recent report by Global Firepower, which tracks external debt as part of its annual defence review, shows that Egypt has the highest external debt in Africa, standing at $103.75 billion, ranking 50th globally. South Africa follows closely in second place with $58.77 billion, ranked 56th globally.
External Debt is just one outlying factory considered in the GFP ranking concerning a given nation’s fiscal health – namely due to the inherently high cost of going to war or maintaining a sizeable standing military.
On the other end of the spectrum, Eritrea ranks among the African countries with the lowest external debt, standing at $635.5 million and ranking 145th globally.
The Central African Republic follows with $666.3 million, ranking 144th, while Liberia holds $830.9 million in external debt, placing 143rd in the world.
Below are the top 10 African countries with the lowest external debt in 2025:
| Rank | Country | Debt | Global rank |
|---|---|---|---|
| 1 | Eritrea | $635,504,500 | 145th |
| 2 | Central African Republic | $666,293,000 | 144th |
| 3 | Liberia | $830,923,000 | 143rd |
| 4 | Botswana | $1,853,500,000 | 140th |
| 5 | Chad | $2,038,000,000 | 139th |
| 6 | South Sudan | $2,475,000,000 | 136th |
| 7 | Sierra Leone | $2,687,000,000 | 135th |
| 8 | Madagascar | $3,028,500,000 | 131st |
| 9 | Burkina Faso | $3,145,000,000 | 130th |
| 10 | Mali | $3,322,000,000 | 129th |
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