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Many African nations are grappling with substantial debt levels due to factors like excessive borrowing, poor economic management, unstable political climates, and fluctuating commodity prices. Here’s a look at the countries with the largest debts relative to their GDP:
- Eritrea: 210.6% of GDP
- Eritrea holds the highest debt ratio in Africa, significantly surpassing its annual economic output.
- Sudan: 146.5% of GDP
- Facing famine and political unrest, Sudan has one of the continent’s largest debt burdens.
- Zambia: 107.5% of GDP
- Heavy borrowing for infrastructure, particularly from external sources, has led to Zambia’s significant debt distress.
- Cape Verde: 107.1% of GDP
- The tourism-dependent island nation saw its debt rise during the COVID-19 pandemic.
- Mozambique: 97.5% of GDP
- Mozambique’s debt is tied to the notorious “hidden debt” scandal and public spending challenges.
- Congo (Republic of the Congo): 94.7% of GDP
- The Republic of the Congo’s reliance on oil revenues, combined with volatile oil prices, has contributed to its debt situation.
- Zimbabwe: 87.2% of GDP
- Years of hyperinflation and economic mismanagement have led to Zimbabwe’s high debt levels.
- Malawi: 85.4% of GDP
- Malawi’s debt issues stem from dependence on foreign aid and agricultural instability.
- Ghana: 82.4% of GDP
- Despite economic reforms, Ghana struggles with high debt, inflation, and a depreciating currency.
- Mauritius: 79.1% of GDP
- The economic impact of the COVID-19 pandemic, particularly on tourism, has increased Mauritius’s debt.
These countries highlight the ongoing challenges many African nations face in managing debt and fostering economic stability.