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Business Insider
14-05-2025
- Business
- Business Insider
Top 10 African countries with the highest IMF debt in May 2025
Within the last few weeks, there have been massive developments between West African countries and the International Monetary Fund (IMF). Nigeria and Ghana stand at the forefront of these current developments. Business Insider Africa presents the top 10 African countries with the highest debt to the IMF in April 2025. This list is courtesy of data from the IMF's website. Egypt ranks number 1 on the list. Recent reports indicate that Nigeria has repaid the $3.4 billion emergency loan secured from the International Monetary Fund (IMF) in 2020, with the final installment paid ahead of time on April 30, 2025. This, alongside the fact that Ghana's debt-to-GDP ratio likely fell to 54% in January 2025, down from 61.8% at the end of December 2024. As for Nigeria, the IMF clarified that while Nigeria has made significant progress in settling its financial obligations, reports claiming the country has fully repaid its debts are inaccurate. The global lender noted that a $30 million yearly service charge remains unpaid. Nigeria, Africa's fourth-largest economy, has repaid a $3.4 billion emergency loan borrowed from the International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI), which was used in 2020 to mitigate the economic effects of the COVID-19 pandemic. By its side, neighboring country Ghana, according to Barclays Plc, is improving significantly in its debt position as a result of economic growth and stricter controls on governmental spending following itsrecent debt crisis. In a note to clients, Barclays analysts Michael Kafe and Andreas Kolbe indicated that Ghana's debt-to-GDP ratio is anticipated to fall to 54% in January 2025, down from 61.8% at the end of December 2024. This is a significant success, coming three years ahead of the International Monetary Fund's (IMF) 2028 deadline for the country's $3 billion support plan. While this development is laudable, the country still boasts one of Africa's largest debts to the International Monetary Fund, as is the case with several other African countries. With that said, here are the other 9 African countries with the largest debt to the IMF alongside the West African Gold Coast, according to the IMF's website. Top 10 African countries with the highest IMF debt in May 2025 Rank Country Total IMF Credit Outstanding ($) as of 05/13/2025 1. Egypt 8,206,734,184 2. Kenya 3,022,009,900 3. Angola 2,839,508,338 4. Cote d'Ivoire 2,628,428,440 5. Ghana 2,448,001,000 6. Democratic Republic of Congo 1,789,100,000 7. Ethiopia 1,422,865,000 8. Cameroon 1,182,660,000 9. Senegal 1,019,300,000 10. Tanzania 1,009,260,000
Business Insider
12-05-2025
- Business
- Business Insider
Ghana beats IMF debt target three years early as Mahama tightens fiscal policy
Ghana is seeing a significant improvement in its debt position, thanks to economic expansion and tighter control of public expenditure following a recent debt crisis, according to Barclays Plc. Ghana's debt-to-GDP ratio improved to 54% as of January 2025, surpassing the IMF's 2028 target. The government aims to reduce the budget deficit to 3.1% of GDP in 2025, compared to 7.9% in 2024. Barclays credits this reduction to economic growth and fiscal restraint. In a note shared with clients, Barclays analysts Michael Kafe and Andreas Kolbe revealed that Ghana's debt-to-GDP ratio likely fell to 54% in January 2025—down from 61.8% at the end of December 2024. This marks a considerable achievement, arriving three years ahead of the International Monetary Fund's (IMF) 2028 target under the country's $3 billion support programme. Debt ratio falls on back of lower borrowing and expanding economy The analysts attribute the rapid decline to reduced government borrowing and a notable increase in the country's gross domestic product. "Ghana's public debt has eased earlier than expected, largely due to a bigger economy and fiscal restraint," Kafe and Kolbe noted. The Bank of Ghana is expected to release its official report with updated debt statistics within the next two weeks. Following a default on external loans in 2022, Ghana turned to the IMF for assistance. Now, under the new leadership of President John Dramani Mahama—who secured a decisive victory in the December 2024 elections—the government has committed to restoring economic stability through prudent fiscal measures. Mahama's administration is targeting a sharp reduction in the budget deficit, aiming to bring it down to 3.1% of GDP in 2025, compared with 7.9% recorded in 2024. Public debt inches up despite overall progress Despite the positive trajectory, public debt did rise slightly in January, increasing by 3.9% month-on-month to 755 billion Ghanaian cedis (approximately $57.4 billion). This increase was mainly driven by about 10 billion cedis in domestic borrowing and a 4% depreciation of the Ghanaian cedi against the US dollar. Nonetheless, the country's nominal GDP is projected to grow significantly, reaching an estimated 1.4 trillion cedis in 2025, up from around 1.2 trillion cedis the previous year. Debt may rise temporarily as development programmes roll out Barclays warned that while the outlook is encouraging, debt levels could temporarily rise as the government begins to implement its planned programmes. "Although Ghana is making progress, public debt could increase again as the administration scales up expenditure for key initiatives," the analysts observed.
Bloomberg
09-05-2025
- Business
- Bloomberg
Ghana's Debt Burden Seen Falling Sharply on Economic Expansion
Ghana's debt burden will ease sharply this year as the economy expands and the government reins in spending after a debt crisis, Barclays Plc said. The country's debt ratio probably declined to 54% of gross domestic product in January from 61.8% of GDP at the end of December, three years earlier than an International Monetary Fund goal under the country's $3 billion program, Barclays analysts Michael Kafe and Andreas Kolbe wrote in a note to clients. That's on the back of reduced government borrowing and a bigger GDP, the analysts said.
