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Business Insider
3 days ago
- Business
- Business Insider
Top 10 African countries with the highest IMF debt in July 2025
Just in July alone, the International Monetary Fund (IMF) is reported to be looking into the disbursements of loans to Egypt and Ethiopia, raising new worries about Africa's growing reliance on IMF financing. Business Insider Africa presents the top 10 African countries with the highest debt to the IMF in July 2025. This list is courtesy of data from the IMF's website. Egypt ranks number 1 on the list. While these financial aids are frequently portrayed as lifelines for weak countries, the long-term consequences of high IMF debt are raising concerns across the continent. Egypt got $1.2 billion after completing the fourth assessment of its $8 billion loan program, increasing the total amount disbursed to $3.5 billion. However, the IMF cautioned that Egypt is under "high sovereign stress," with external debt expected to climb from $162.7 billion in 2024/25 to more than $202 billion by the end of the decade. Similarly, Ethiopia received $262 million following a successful third program review, although its financial situation remains fragile. The government is discussing a $8.4 billion restructuring with official creditors under the G20's Common Framework while also preparing to repay a $1 billion Eurobond. The combined burden of IMF loans and commercial debt is straining national budgets and impeding growth projects. On July 8, the IMF published a new analytical note on "How to Stabilize Africa's Debt", emphasizing that debt stabilization typically hinges on stronger institutions, growth-friendly fiscal reforms, and IMF-supported macro stability. Senegal offers a warning story. Disbursements were halted after officials acknowledged to underreporting debt, and the percentage was revised from 74% to over 100% of GDP. S&P downgraded the country, while IMF assistance remains stalled until a realistic recovery plan. These instances highlight a larger issue: while IMF loans can help prevent economic crises, they frequently come with stringent conditions, austerity measures, and little freedom for domestic development goals. Without proper management, governments risk being locked in a cycle of borrowing and repaying, hurting economic and public trust. Having highlighted these facts, here are the African countries with the largest debts to the IMF in July 2025, as per the IMF's database. Compared to the list last month, IMF credits for Egypt, Cote d'Ivoire, Ghana, DRC, Ethiopia, and Tanzania increased, while the rest reduced. Top 10 African countries with the highest IMF debt in July 2025 Rank Country Total IMF Credit Outstanding as of 07/21/2025 1. Egypt 7,422,862,519 2. Cote d'Ivoire 3,104,687,108 3. Kenya 3,022,009,900 4. Angola 2,721,883,340 5. Ghana 2,707,198,500 6. DRC 1,952,850,000 7. Ethiopia 1,593,683,500 8. Tanzania 1,335,730,000 9. Cameroon 1,150,920,000 10. Senegal 992,936,112
Saudi Gazette
5 days ago
- Business
- Saudi Gazette
Saudi finance minister calls for urgent reform of global trade system at G20 summit
Saudi Gazette report CAPE TOWN — Saudi Finance Minister Mohammed Al-Jadaan emphasized the urgent need to accelerate reform of the global trade system in response to shifting economic realities, during the third G20 Finance Ministers and Central Bank Governors Meeting held under South Africa's presidency on July 17–18. 'The fiscal space is shrinking at a time when financing needs are growing, leading to higher borrowing costs and mounting pressure on both governments and the private sector,' Al-Jadaan said during his address. He welcomed the G20 note on lessons learned from the Common Framework cases and the accompanying debt treatment steps document, noting their importance in strengthening transparency and predictability. He also stressed the need to continue supporting countries facing financial stress or short-term liquidity challenges. On the sidelines of the G20 meetings, Al-Jadaan held bilateral talks with several finance ministers to discuss global economic developments and topics of mutual meeting, hosted in KwaZulu-Natal, South Africa, brought together G20 finance ministers, central bank governors, invited country representatives, and heads of international and regional financial institutions.
The South African
6 days ago
- Business
- The South African
G20 members commit to addressing debt vulnerabilities
Members of the G20 have pledged to address the mounting debt pressures in low and middle-income economies amid global financial turbulence. Image: SAgovnews Home » G20 members commit to addressing debt vulnerabilities Members of the G20 have pledged to address the mounting debt pressures in low and middle-income economies amid global financial turbulence. Image: SAgovnews Members of the G20 have pledged to address the mounting debt pressures in low and middle-income economies amid the global financial is according to Deputy Finance Minister Dr David Masondo who addressed a media briefing following the third G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting held in KwaZulu-Natal this and emerging economies – particularly those in Africa – are grappling with high and rising debt vulnerabilities, shrinking fiscal flexibility and high borrowing costs.'[Members]… reaffirmed their commitment to further strengthen the implementation of the G20 Common Framework. To give effect to this, the G20 FMCBG endorsed the G20 Note on Lessons Learned from the Initial Common Framework Cases and the G20 Note on Steps of a Debt Restructuring under the Common Framework. 'These documents have been published on the G20 website. In addition, fact sheets on the Common Framework country cases for Chad, Zambia and Ghana have also been published on the G20 and Paris Club websites to improve information sharing,' he said. In further discussions, the members also acknowledged the G20 Note on Special drawing rights [SDRs] which, the Deputy Minister said, 'highlights the achievement of exceeding $100 billion in voluntary channelling of SDRs or equivalent contributions for countries in need.'The pledges to this currently stand at some $113.8 billion coming from 35 countries. 'Members also underscored the need for enhancing the representation and voice of developing countries in decision-making in MDBs [Multilateral Development Banks]and other international economic and financial institutions.'Members recognised the relative resilience of capital flows in Emerging Market and Developing Economies [EMDEs] despite heightened global policy uncertainty – underscored by strong macroeconomic fundamentals and sound policy frameworks. 'They also highlighted the growing influence of non-bank financial institutions [NBFIs] and stressed the importance of gaining a deeper understanding of their impact on these flows. Members further emphasised the significance of structural reforms in fostering long-term sustainable capital flows to EMDEs,' said the Deputy Minister. Regarding energy transitions, Masondo said during the meeting, Ministers and central bank Governors considered key recommendations for 'enhancing collaboration among Vertical Climate and Environment Funds, Multilateral Development Banks, National Development Banks and the private sector'.'Members reaffirmed the urgency of scaling up financing for adaptation and just transitions and reflected on key recommendations emerging from a comprehensive analysis undertaken by multiple knowledge partners. These included guidance on integrating adaptation into voluntary transition planning, addressing insurance protection gaps, scaling financing mechanisms, and strengthening enabling environment.'[They] also received an update on the work of the Climate Data Steering Committee, which has developed a set of principles for the development of a Common Carbon Credit Data Model aimed at promoting interoperability and improving transparency of carbon markets. 'They noted that the draft data model is currently undergoing a public consultation with both the private and public sectors,' the Deputy Minister said. The Third Meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG) took place on 17 and 18 July 2025 in Durban. The National Treasury and the South African Reserve Bank are jointly responsible for overseeing the work of the G20 Finance Track under the co-chairship of Finance Minister Enoch Godongwana and Reserve Bank Governor Lesetja Kganyago. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Reuters
17-07-2025
- Business
- Reuters
Issues on the agenda at the G20 finance meeting in South Africa
JOHANNESBURG, July 16 (Reuters) - Group of 20 finance officials meet in South Africa from Thursday amid trade tensions, a global economic slowdown and Washington's threat to withdraw from multilateral organisations. President Cyril Ramaphosa has sought to leverage Africa's first G20 presidency to promote an African agenda, with topics including the high cost of capital and climate change. Here are the key issues to be discussed: Nearly two dozen countries in Africa are already in or at high risk of debt distress, the International Monetary Fund said. Debt-servicing costs crowd out spending on services like infrastructure development, health and education. Launched in late 2020, the G20 Common Framework is a platform aimed at speeding up and simplifying the process of getting overstretched countries back on their feet. But progress has been slow. Making the platform more efficient is one target for South Africa. Ramaphosa launched an Africa Expert Panel in March whose role is to galvanise efforts, chief among them debt relief. Panel chair Trevor Manuel told Reuters it had already begun to make detailed recommendations on improving the framework. "One of the reforms is that the opportunities in the Common Framework should be available to all middle-income countries as well," said Manuel. With aid and development-finance cuts and a pivot by wealthy countries to defence spending, traditional funding sources for developing nations have become scarcer. South Africa is looking to shore up favourable finance for poorer nations. It wants to strengthen and improve the role of multilateral development banks in financing for development. Washington, meanwhile, could potentially withdraw from more global institutions - including these banks. Some analysts believe Washington's withdrawal from multilateralism could leave a space for China to occupy, but it is unclear if Beijing aims to do that. Lending to Africa from China has slowed to a trickle leaving an $80 billion financing gap. Meanwhile, U.S. and European grants - accounting for 25% of the region's external financing - face cuts as Washington suspends foreign aid and European capitals redirect funds toward defence. President Donald Trump's administration has withdrawn from the Just Energy Transition Partnership (JETP) - a key focus for South Africa that is designed to help developing countries transition away from coal to cleaner energy. Launched in 2021, JETPs aim to funnel money from governments, multilateral lenders and the private sector to renewable energy projects in a way that benefits local communities. On Monday, the G20's financial stability watchdog said it had developed a new plan to tackle climate risks but it had paused further policy work in light of the U.S. retreat from climate action. Mobilising funding for climate disasters affecting the Global South was a key agenda item for South Africa's presidency. Trump's tariff threats have disrupted the global economy and the response will dominate the agenda even as U.S. Treasury Secretary Scott Bessent skips the gathering. U.S. plans for tariffs on Canada, Europe and Mexico as well as threats to impose further levies on BRICS member countries including China, India, Russia, Brazil and G20 host South Africa, further heighten tensions between the world's largest economy and other G20 nations. Director General of Treasury Duncan Pieterse said in a statement on Monday that he hoped to issue the first Communique under the South African G20 presidency at the end of the meetings. The G20 was last able to take a mutually agreed stance to issue a Communique in July of 2024.
Straits Times
16-07-2025
- Business
- Straits Times
Issues on the agenda at the G20 finance meeting in South Africa
Find out what's new on ST website and app. A drone view shows the beach front ahead of the G20 finance meeting in Durban, South Africa, July 15, 2025. REUTERS/Rogan Ward JOHANNESBURG - Group of 20 finance officials meet in South Africa from Thursday amid trade tensions, a global economic slowdown and Washington's threat to withdraw from multilateral organisations. President Cyril Ramaphosa has sought to leverage Africa's first G20 presidency to promote an African agenda, with topics including the high cost of capital and climate change. Here are the key issues to be discussed: DEBT STRESS Nearly two dozen countries in Africa are already in or at high risk of debt distress, the International Monetary Fund said. Debt-servicing costs crowd out spending on services like infrastructure development, health and education. Launched in late 2020, the G20 Common Framework is a platform aimed at speeding up and simplifying the process of getting overstretched countries back on their feet. But progress has been slow. Making the platform more efficient is one target for South Africa. Ramaphosa launched an Africa Expert Panel in March whose role is to galvanise efforts, chief among them debt relief. Panel chair Trevor Manuel told Reuters it had already begun to make detailed recommendations on improving the framework. Top stories Swipe. Select. Stay informed. Singapore July BTO launch to have over 4,600 balance flats, 2 BTO projects with under than 3-year wait Singapore Acute psychiatry services to be expanded across all healthcare clusters: MOH Singapore 'Kpods broke our marriage, shattered our children': Woman on husband's vape addiction Singapore Asia-Pacific will need over 230k new pilots, 250k aircraft maintenance technicians by 2042: ICAO chief Business Tycoon Robert Kuok's daughter Kuok Hui Kwong appointed CEO of Shangri-La Asia Singapore Alleged Toa Payoh cat killer and abuser handed new charge of torturing sixth cat Life Walking for exercise? Here are tips on how to do it properly Multimedia Telling the Singapore story for 180 years "One of the reforms is that the opportunities in the Common Framework should be available to all middle-income countries as well," said Manuel. FINANCING FOR DEVELOPMENT With aid and development-finance cuts and a pivot by wealthy countries to defence spending, traditional funding sources for developing nations have become scarcer. South Africa is looking to shore up favourable finance for poorer nations. It wants to strengthen and improve the role of multilateral development banks in financing for development. Washington, meanwhile, could potentially withdraw from more global institutions - including these banks. Some analysts believe Washington's withdrawal from multilateralism could leave a space for China to occupy, but it is unclear if Beijing aims to do that. Lending to Africa from China has slowed to a trickle leaving an $80 billion financing gap. Meanwhile, U.S. and European grants - accounting for 25% of the region's external financing - face cuts as Washington suspends foreign aid and European capitals redirect funds toward defence. JUST ENERGY TRANSITION President Donald Trump's administration has withdrawn from the Just Energy Transition Partnership (JETP) - a key focus for South Africa that is designed to help developing countries transition away from coal to cleaner energy. Launched in 2021, JETPs aim to funnel money from governments, multilateral lenders and the private sector to renewable energy projects in a way that benefits local communities. On Monday, the G20's financial stability watchdog said it had developed a new plan to tackle climate risks but it had paused further policy work in light of the U.S. retreat from climate action. Mobilising funding for climate disasters affecting the Global South was a key agenda item for South Africa's presidency. TRADE Trump's tariff threats have disrupted the global economy and the response will dominate the agenda even as U.S. Treasury Secretary Scott Bessent skips the gathering. U.S. plans for tariffs on Canada, Europe and Mexico as well as threats to impose further levies on BRICS member countries including China, India, Russia, Brazil and G20 host South Africa, further heighten tensions between the world's largest economy and other G20 nations. COMMUNIQUE Director General of Treasury Duncan Pieterse said in a statement on Monday that he hoped to issue the first Communique under the South African G20 presidency at the end of the meetings. The G20 was last able to take a mutually agreed stance to issue a Communique in July of 2024. REUTERS
