Africa is facing a severe financial crisis as the International Monetary Fund (IMF) debt continues to escalate to catastrophic levels. With Egypt topping the list of African countries heavily indebted by the IMF with over USD 10.2 billion, many nations across the continent are grappling with significant financial burdens.
Countries such as Angola, Kenya, and Ghana are heavily indebted, leading to economic constraints and challenges in development.
According to the latest data on IMF credit outstanding as of July 26, 2024, Egypt holds the top position among African countries in terms of significant debt to the IMF, with a total of USD 10,215,014,179 owed.
The data provides a comprehensive overview of the world’s debt situation, exposing the nations grappling with hefty financial obligations and shedding light on the extent of their debt struggles.
While a substantial IMF loan can provide crucial financial assistance and help steady a country’s economy, including those in Africa, it also comes with significant responsibilities and challenges that the country must effectively navigate. If not handled carefully, a large IMF loan can lead to a surge in national debt, potentially triggering economic constraints.
When an African nation has a substantial amount of outstanding credit with the International Monetary Fund, it means that the government has borrowed heavily from the IMF but has not yet repaid the loans.
IMF loans are often utilized to stabilize a country’s economy, bolster its currency, and rebuild investor and public confidence. However, this approach is a double-edged sword, offering relief while simultaneously accruing debt that can be challenging to repay.
A significant level of IMF financing can exacerbate the country’s overall debt burden. Managing this debt requires careful budgetary planning, potentially restricting the government’s ability to finance development projects and social services.
Furthermore, governments facing these constraints are obligated to make monthly interest payments on the borrowed funds, which can significantly impact their overall budget. This financial obligation reduces the funds available for other essential services and development projects, putting additional pressure on the national budget.
Full List of African Countries Heavily Indebted by the IMF
Egypt: USD 10,215,014,179. Egypt tops the list, with an outstanding debt surpassing USD 10.2 billion.
Angola: USD 2,989,900,003. Angola holds the second position on the list, with its debt nearing USD 3 billion.
Kenya: USD 2,566,263,300. East Africa’s largest economy, Kenya has accumulated over USD 2.5 billion in IMF loans.
Ghana: USD 2,303,438,500. Ghana owes the IMF approximately USD 2.3 billion.
Côte d’Ivoire: $2,246,318,672. This West African nation has an outstanding debt of over USD 2.2 billion to the IMF.
South Africa: USD1,907,000,000. Known as Africa’s most industrialized country, South Africa has USD 1.9 billion in IMF debt.
Democratic Republic of Congo: USD 1,599,000,000. The Democratic Republic of Congo owes the IMF roughly USD 1.6 billion
Nigeria: USD 1,227,250,000. Nigeria, which boasts Africa’s largest economy, has an IMF debt amounting to approximately USD 1.23 billion.
Senegal: USD 1,143,348,750. Senegal’s debt to the IMF stands at about USD 1.14 billion.
Morocco: USD 1,056,550,000. Morocco owes the IMF around USD 1 billion.
Other African Countries
Benin owes the IMF USD 694.6 million, Burkina Faso owes the IMF USD 312.5 million, Burundi owes the IMF USD 101.6 million Cameroon owes the IMF USD 1.130 billion, Central African Republic has USD 216.2 million in IMF debt.
Chad owes the IMF USD 503.3 million, Comoros has accumulated USD 18.8 million in IMF loans, Democratic Republic of Congo owes the IMF USD 1.59 billion, Republic of Congo has accumulated USD 324 million in IMF loans, Djibouti has USD 31.8 million in IMF debt, Equatorial Guinea owes the IMF USD 74 million, Eswatini owes the IMF USD 49 million, Ethiopia has USD 366.6 of IMF debt.
Furthermore, Gabon owes the IMF USD 571.5 million, Gambia – USD 111.2 million, Guinea – USD 354.4 million, Guinea-Bissau: USD 43.4 million, Lesotho – USD 11.6 million, Liberia – USD 157.2 million, Madagascar – USD 655.6 million, Malawi – USD 321 million, Mali – USD 344.6 million, Mauritania – USD 275.4 million, Mozambique – USD 562.3 million, Namibia – USD 167.2 million, Niger – USD 397.9 million, Rwanda – USD 476.1 million, Sierra Leone – USD 332 million, Somalia – USD 79.5 million, South Africa – USD 1.9 billion, Sudan – USD 991.5 million, Tanzania – USD 853.2 million, Togo – USD 273.8 million, Tunisia – USD 909.4 million, Uganda – USD 992.7 million, and Zambia – USD 852.9 million.
This escalating debt crisis threatens to destabilize African economies, reduce funding for essential services as resources meant to fund critical sectors of the economy are diverted to pay debt.
