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Business Insider
16-07-2025
- Business
- Business Insider
Top 10 African countries with the most improvement in consumer price from 2024 to 2025
Consumer price index (CPI) is a significant economic indicator that influences almost every aspect of a country's financial health, from consumer spending to government debt management. This metric has constituted a cause for concern in some African countries, while for others, it has been the backbone of their economic growth. Business Insider Africa presents the top 10 African countries with the most improvement in inflation 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 moderate inflation, which is a measure of CPI, is often regarded as a sign of a developing economy, a continuously high or unexpected inflation rate can have disastrous consequences for national finances. On the other hand, a better year-on-year inflation rate, in which inflation falls or stabilizes at a manageable level, can provide significant fiscal benefits to both governments and individuals. One of the key fiscal advantages associated with rising CPI is more budget predictability. When inflation is under control, governments can better estimate tax collections and allocate funds for public services, infrastructure, and social initiatives. It also minimizes the likelihood of unexpected budget shortfalls due to rising expenses, since the cost of products and services becomes more predictable. A higher CPI rate also lowers the cost of debt payment. Countries with strong CPI indexes frequently experience rising interest rates as lenders want greater returns to offset the depreciation of the currency. Lower CPI figures helps to keep interest rates constant, lowering the cost of borrowing for governments. This budgetary breathing room enables more profitable investments rather than merely managing debt repayments. Furthermore, a more positive CPI forecast boosts investor confidence, both locally and abroad. Stable inflation frequently indicates strong economic management, which attracts foreign direct investment (FDI). Increased investor confidence may result in a stronger currency, a more resilient bond market, and more dynamic capital inflows, all of which help the public sector. With that said, here are the 10 African countries with the most improvement in their consumer price index (annual change %) from 2024 to 2025, according to the Africa Pulse report by the World Bank. Top 10 African countries with the most improvement in consumer price from 2024 to 2025 Rank Country Consumer price index 2025 Consumer price index 2024 1. Zimbabwe 84.9% 736.1% 2. Sudan 89.4% 170.0% 3. Sierra Leone 18.0% 29.1% 4. Democratic Republic of Congo 8.9% 17.7% 5. Gabon 20.7% 26.7% 6. Ghana 17.2% 22.9% 7. São Tomé and Príncipe 9.6% 14.4% 8. Nigeria 26.6% 26.6% 9. Niger 5.3% 9.1% 10. Angola 25.0% 28.2%
Business Insider
26-06-2025
- Business
- Business Insider
Top 10 African countries with the most improvement in government debt from 2024 to 2025
In a global climate characterized by financial distress and fiscal imbalances, some African countries that have managed to restrict general government debt growth to manageable levels are increasingly standing out. 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
Business Insider
18-06-2025
- Business
- Business Insider
Top 10 African countries with the highest leap in government debt from 2024 to 2025
In recent years, general government debt has fluctuated significantly across several African countries. Some issues, including continuous fiscal deficits, currency devaluation, rising interest rates, global economic shocks, and the aftermath of the COVID-19 epidemic, have prompted African governments to borrow more money in order to cover revenue shortages. Business Insider Africa presents the top 10 African countries with the highest leap in government debt from 2024 to 2025. This list is courtesy of the Africa Pulse report by the World Bank. South Sudan ranks number 1 in the list. Although debt may be an essential instrument for funding development, its sharp annual growth is posing questions about long-term viability, economic expansion, and public welfare. Countries like Ghana, Zambia, Kenya, and Egypt have witnessed substantial debt increases, while Nigeria, despite historically low debt-to-GDP ratios, has had its debt service-to-revenue ratio balloon in recent years. As governments borrow year after year to fund infrastructure, pay salaries, and service previous debts, their capacity to manage new debt loads deteriorates. The increase in debt levels inevitably leads to increases in interest payments. For many African countries, debt payment consumes a huge amount of their budget, leaving little for key areas such as education, healthcare, and infrastructure. Large government borrowing frequently causes inflationary pressures, especially when supported by central banks. Furthermore, large debt loads make currencies more vulnerable to speculative attacks, reducing buying power. Rising debt levels, particularly when combined with insufficient transparency, undermine investor trust. This might lead to greater risk premiums, less foreign direct investment (FDI), and more volatility in financial markets. The factor mentioned above shows that while debt may be a strong economic instrument when managed wisely, the year-on-year increase in general government debt across Africa presents severe difficulties. Rising debt burdens, if not addressed, might set off a vicious cycle of default, austerity, and underdevelopment. With that said, here are the 10 African countries with the highest 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 highest leap in government debt from 2024 to 2025 Rank African country General government debt (% of GDP) 2025 General government debt (% of GDP) 2024 1. South Sudan 55.6% 46.0% 2. Gabon 80.2% 72.5% 3. Rwanda 84.8% 78.8% 4. Ethiopia 28.4% 22.6% 5. Botswana 39.7% 35.3% 6. Democratic Republic of Congo 26.0% 22.1% 7. Mozambique 96.8% 94.2% 8. South Africa 78.8% 76.3% 9. Nigeria 55.5% 53.3% 10. Madagascar 53.3% 51.3%
Business Insider
06-06-2025
- Business
- Business Insider
Top 10 African countries with the lowest GDP growth in 2025 compared to last year
In 2025, the economic outlook for most African countries in terms of real GDP growth is less optimistic than in the previous year. Business Insider Africa presents the top 10 African countries with the lowest GDP growth in 2025 compared to last year. This list is courtesy of the Africa Pulse report by the World Bank. South Sudan ranks number 1 on the list. Numerous obstacles and drawbacks for the continent's growth trajectory are presented by this declining tendency. These nations have the potential to influence trade patterns and regional integration by serving as pillars of stability and economic power in their respective areas. African nations with increasing growth are standing out in a year when many economies are slowing down; they are creating the foundation for long-term benefits, increased global significance, and better living conditions for their people. First and foremost, governments are less able to create jobs when GDP slows. The youthful population of Africa is growing quickly, with millions of young people joining the workforce every. Job creation falls behind population growth as economic development stagnates, which exacerbates underemployment and unemployment. More young people may be forced into informal or unstable labor as a result of this circumstance, which might intensify social discontent. Secondly, government revenue is constrained by slower GDP growth. Tax revenue declines with slowing economic activity, which leaves governments with less money to spend on vital areas like public safety, infrastructure, healthcare, and education. Significant investment in growth is hampered by high debt and limited fiscal flexibility. Investors generally prefer stability and growth, and a decline in economic performance indicates increased risk. This implies that countries experiencing slower development may have a more difficult time attracting investment for manufacturing, technology, and resource extraction initiatives, all of which are critical areas for long-term structural reform. Furthermore, countries with slower development are more susceptible to external shocks. Whether it's a rise in fuel prices, climate-related disasters, or trade disruptions, economies that aren't growing fast enough have fewer buffers to absorb these impacts, resulting in increased inequality and economic fragility. With that said, here are the African countries with the largest dip in real GDP growth this year, from last year, as per the Africa Pulse Report by the World Bank. Rank Country Real GDP growth rate 2025 Real GDP growth rate 2024 1. South Sudan -34.7 -7.2 2. Equatorial Guinea -3.1 1.6 3. Rwanda 7.0 8.9 4. Ghana 3.9 5.7 5. Angola 2.7 4.4 6. Democratic Republic of Congo 4.8 6.5 7. Ethiopia 6.4 8.1 8. Mauritius 3.2 4.7 9. Cabo Verde 5.9 7.3 10. Niger 7.1 8.4
Business Insider
02-06-2025
- Business
- Business Insider
Top 10 African countries with the highest leap in GDP growth rate in 2025
In 2025, many African countries are experiencing slower real GDP growth compared to 2024, primarily due to global trade uncertainties and domestic fiscal challenges. Business Insider Africa presents the top 10 African countries with the highest GDP growth in 2025 compared to last year. This list is courtesy of the Africa Pulse report by the World Bank. Sudan ranks number 1 on the list. Despite these hurdles, some African countries are expected to experience stronger real GDP growth in 2025 compared to the previous year, indicating resilience and potential benefits. Despite these hurdles, some African countries are expected to experience stronger real GDP growth in 2025 compared to the previous year, indicating resilience and potential benefits. These countries' better development paths provide several benefits. First, faster economic growth indicates resilience, particularly in a global climate characterized by inflation, monetary tightening, and trade disruptions. Such success boosts investor trust and has the potential to enhance foreign direct investment. A country that continues to thrive while others stagnate attracts global investment, which can be reinvested in essential areas such as energy, education, healthcare, and transportation. Higher GDP growth may boost foreign direct investment, create more job opportunities, and provide governments with more budgetary room to invest in social services and infrastructure. Furthermore, strong economic growth can boost investor confidence and promote regional stability. For example, Uganda's anticipated 7.5% growth rate in 2025, up from 5.9% in 2024, is likely to be driven by advances in agriculture, infrastructure development, and oil exploration investments. Additionally, as economic activity increases, governments have more funds to implement social programs, pay down debt, and enhance their resilience to future economic shocks. These nations can serve as anchors of stability and economic power in their respective areas, affecting trade patterns and regional integration. In a year when many economies are stalling, African countries with strong growth are distinguishing themselves by establishing the basis for long-term benefits, increased global importance, and higher quality of life for their people. With that said, here are the African countries with the largest leap of real GDP growth this year, from last year, as per the Africa Pulse Report by the World Bank. Top 10 African countries with the highest leap in GDP growth rate in 2025 Rank Country Real GDP growth rate 2025 Real GDP growth rate 2024 1. Sudan 5.0% -13.5% 2. Zimbabwe 6.0% 2.0% 3. Zambia 6.2% 4.0% 4. São Tomé and Príncipe 3.1% 0.9% 5. Senegal 7.9% 5.8% 6. Mozambique 3.0% 1.8% 7. Guinea 6.7% 5.7% 8. Mali 4.8% 4.0% 9. Seychelles 3.1% 2.4% 10. Central Africa Republic 2.1% 1.5%
