Top 10 African countries with the least improvement in government balance
Business Insider Africa presents the top 10 African countries with the worst decline in extra cash from 2024 to 2025.
This list is courtesy of the Africa Pulse Report by the World Bank.
Lesotho ranks number 1 on the list.
When this equilibrium weakens year after year, the consequences are severe and far-reaching.
A deteriorating general government balance, whether caused by dwindling income, excessive expenditure, or bad fiscal planning, undermines a country's economic base.
Recurring deficits may easily escalate into a full-fledged fiscal crisis with long-term ramifications for African countries that are already struggling structurally.
A negative general government balance (fiscal deficit) is relatively unusual, particularly in developing economies that invest in infrastructure or recovery efforts.
However, when deficits build year after year with no clear plans for reversal, it indicates a worsening financial situation.
The problem is not merely the amount of the deficit, but also its endurance.
A country that continually lives beyond its means confronts rising costs, reduced flexibility, and increased economic vulnerability.
To deal with large deficits, governments often have to cut spending, sometimes in critical sectors such as education, healthcare, and infrastructure.
These are the sectors that fuel inclusive growth and long-term development. When governments reduce investment in their people and productivity, they harm their economies' long-term potential.
A strong government balance works as a cushion. When tragedy strikes, whether it's a drought, a conflict, or a pandemic, countries with robust fiscal situations can respond swiftly and efficiently.
Those with worsening balances, on the other hand, are forced to seek emergency finance, which is sometimes too late to avert significant harm to residents and the economy.
With that said, here are the African countries with the worst government balances in 2025, compared to 2024, as reported in the Africa Pulse Report.
Top 10 African countries with the least improvement in government balance
Rank Country Government balance 2025 in % of GDP Government balance 2024 in % of GDP Differential
1. Lesotho 0.1% 8.8% -8.7%
2. Equatorial Guinea 0.4% 2.6% -2.2 %
3. Chad -3.8% -1.9% -1.9%
4. Gabon -5.4% -3.7% -1.7%
5. Eswatini -3.5% -2.0% -1.5%
6. Nigeria -4.8% -3.5% -1.3%
7. Mauritania -1.4% -0.1% -1.3%
8. South Sudan -7.8% -6.6% -1.2%
9. Seychelles -1.6% -0.4% -1.2%
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