Top 10 African countries with the most improvement in government debt from 2024 to 2025
Business Insider Africa presents the top 10 African countries with the lowest leap in government debt from 2024 to 2025.
This list is courtesy of the Africa Pulse report by the World Bank.
Zimbabwe ranks number 1 in the list.
While borrowing is sometimes required to promote development, the capacity to sustain a minimal year-on-year increase in government debt indicates good economic management, maintains macroeconomic stability, and fosters long-term resilience.
As some African countries face rising debt levels, those with a regulated borrowing pace benefit from a variety of advantages, including increased investor confidence, higher credit ratings, fiscal flexibility, and better economic planning.
A low rise in government debt refers to a steady and sustainable increase in a country's borrowing levels, which is frequently linked to GDP growth and revenue performance.
Rather than aggressive debt accumulation to fill budget shortfalls or fund short-term initiatives, a slower rate of debt increase demonstrates discipline, strategic planning, and a long-term mindset.
When governments avoid excessive borrowing, particularly from central banks, they help to keep inflation under control.
Countries with minimal debt growth are less likely to use money printing or distorting fiscal policies to increase prices, protecting consumer buying power and price stability.
Additionally, investors, both domestic and foreign, want economies that exhibit budgetary discipline. A slower rate of debt buildup indicates that a country is not headed toward unsustainable borrowing.
As a result, these countries frequently have higher sovereign credit ratings, cheaper interest rates on loans, and more access to financial markets.
With debt under control, the cost of loan service, including interest and principal repayments, remains affordable.
This implies that more government money may be directed toward development initiatives, public services, and social programs rather than being used to repay debt.
With that said, here are the 10 African countries with the lowest increase in general government debt (as a measure of debt-to-GDP ratio) from 2024 to 2025, according to the Africa Pulse report by the World Bank.
Top 10 African countries with the most improvement in government debt from 2024 to 2025
Rank African country General government debt (% of GDP) 2025 General government debt (% of GDP) 2024
1. Zimbabwe 64.6 93.3
2. Eritrea 202.4 211.8
3. Malawi 81.9 90.2
4. Senegal 99.9 105.9
5. Gambia 64.8 70.6
6. Cabo Verde 104.6 110.2
7. São Tomé and Príncipe 40.3 45.7
8. Sudan 142.7 147.4
9. Ghana 66.4 70.5
10. Sierra Leone 37.9 41.8
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