While Kenya remains one of Africas hubs for business and communication, its annual GDP growth has not yet caught up with the countrys public debt. This island nation has a debt-to-GDP ratio of 160.7%. The IMF's latest list of low-income countries' Debt Sustainability Analysis (DSA) shows that as of May 31, 2022, 16 African countries were at high risk of debt distress, and 7 . On average, this tax-to-GDP ratio for those 30 countries was 16.5 percent, compared to the OECD average of 34.3 percent and the Latin American and . While Ghana, Nigeria, and Ivory Coast top list of countries with the highest public debt stocks in West Africa, Kenya tops the list for East Africa. As of April 2020, 68 countries were eligible only for IBRD loans and 14 of those were in Africa. Read more.. GREECE: 5. In Gabon, the debt-to-GDP ratio is 72.1%. However, the US government has just signeda $524.7 million, five-year dealto help reduce poverty in the country. Therefore, by comparing the ratio of a country's public debt in relation to its GDP, decisionmakers and multilateral lenders can obtain reliable insight/understanding about the country's capability with regards to paying back its debts. Morocco is in fourth place with $29,420,000,000 of debt, mainly thanks to its liberal supply and demand economy. Trumps America and Brexit are two factors which have recently tipped many of these countries over the edge and into even more serious trouble, exacerbating their existing issues with reduced market access. This island countrys gross debt stands at 101% of its GDP. It has an estimated debt of over US$25 billion. Below are 20 African countries with the highest debt-to-GDP ratios. The national debt in this Horn of Africa country stands at 175.1% of the GDP. In 2009, only 6 per cent of the Rwandan population had access to electricity; today that's up to about 40 per cent. With Massive projects like the standard gauge railway, by-pass roads construction, Mombasa port expansion, Lamu port construction, and currently the Nairobi Expressway, the debt burden to GDP ratio has risen in the past decade placing the country on this list. In this country, the debt-to-GDP ratio currently stands at 79.1%. 1. The 30 high TB/HIV burden countries. They have yet to recover from this, their external debt has increased to $136.6 billion while the number of people in the housing . 13. When shes not writing, she volunteers for a number of local mental health charities and also has a menagerie of pets to look after. Nigeria and Angola. Some of the notable names on this list are Ghana, Kenya and South Africa. BNF women league president blasts opposition disunity, Botswana admits it has low levels of fuel reserves, BMD is watching the AP-BCP Courtship with keen Interest Modubule, BPF Patrons Action Group Rejects Reconciliation Meeting. South Sudan: South Sudan has a debt-to-GDP ratio of 64.4%. Poverty is a key factor for a number of the top 20 most indebted African countries. ITALY: 9. Sixty-eight percent of Zambians live beneath the poverty line, despite the fact that it has reformed its economy so rapidly in recent years. Like other professions, Economists use many abbreviations. 2. as a follow up to the above the us does not use any of its national assets as collateral in any debt negotiation 3. Business Insider Africa presents 20 countries with the highest debt-to-GDP ratio in Africa. Robert Besseling, executive director at EXX Africa, a specialist intelligence company, said during the GTR Africa 2020 Virtual event on October 19 that in terms of sovereign defaults, "Republic of the Congo and Zambia are very high up on our radar, and so is Chad." Highest debt-to-GDP (Gross Domestic Budget) ratios. But it's not the most indebted country on the planet due to its economic prowess. This list is courtesy of a report by Statista dated December 2021. 2.Eritrea : Has national debt to GDP of 151.9%. In 2010, it was approved for $1.9 billion of debt relief by the International Monetary Fund and World Bank. Thanks for signing up for our daily insight on the African economy. The country in 2000 elected to participate in the IMF/World Bank HIPC initiative and had US$ 4 billion of its sovereign debts forgiven. Political instability in Cte dIvoire has made its economic growth shaky and unreliable, and even as its agricultural industry has grown, accompanying high population growth has prevented the country from truly improving its GDP. In 2010, sub-Saharan Africa's debt stood at around $305 billion. The IMF's latest list of . 3. This country has a debt-to-GDP ratio of 68.8%. Also, 100 per cent of. Though Mauritius compares favorably with other sub-Saharan African countries when it comes to annual economic growth and equitable income distribution, its relatively small size forces it to remain dependent on international lending. Global public debt levels were elevated already before the COVID-19 pandemic. Fiscal burdens Nigeria's fiscal burden of total interest payments, domestic and external combined, is by far the highest of the 10 African countries surveyed - at 92.6% it was well ahead of Ghana (49.6%) and Egypt (48.4%) . Read also. We bring you daily editor picks from the best Business Insider news content so you can stay updated on the latest topics and conversations on the African market, leaders, careers and lifestyle. The IMF's latest list of low-income countries' Debt Sustainability Analysis (DSA) shows that as of 31 May 2022, 16 African countries were at high risk of debt distress, and 7 . The following African countries hold the highest public debts levels on the continent, indicating that their economies are not yet developed enough to have achieved complete self-sufficiency. For many . The table has current values for Government Debt to GDP, previous releases, historical highs and record lows, release frequency, reported unit and currency plus links to historical data charts. Cameroon - $5.5 billion 8. Mr Ashbourne's calculations paint a more sobering picture of the debt burden in many African states, as shown in the second chart. Debt Report 2022 Edition II. This Francophone West African country has a debt-to-GDP ratio of 71.9%. The list belongs to it, but some names would surprise us all. In this country, the debt-to-GDP ratio is 82.3%. The IMF released $10 million to help mitigate the deficit. This is a list of countries by external debt, it is the total public and private debt owed to nonresidents repayable in internationally accepted currencies, goods or services, where the public debt is the money or credit owed by any level of government, from central to local, and the private debt the money or credit owed by private households or private corporations based on the country under . Corruption scandals have forced its economy down, and it now has one of thelowest GDP ranks per capita. Already the debt-to-GDP ratio for oil-importing countries in Africa reached 73% of GDP in 2022, because of skyrocketing energy costs brought about by the Ukraine crisis. Expansions in tourism, telecommunications, transportation, and more have contributed to improving Kenyas economy, but continued high foreign investment and development aid, most prominently from China, keeps the public debt at a high percentage of the nations GDP. Egypt is just above it at number 2, with $48,760,000,000 of debt and a government debt-to-GDP ratio of 87.10%! Nigeria - $4.8 billion 9. Eight African countries are already in distress, and almost 40% of countries in sub-Saharan Africa are "in danger of slipping into a major debt crisis" according to non-African sources. 20 countries with the highest debt-to-GDP ratio in Africa. . Since the end of Sierra Leones civil war in 2002, the countrys economy has begun to recover, but hasnt quite reached the growth necessary to start tackling its debt. Number 6 on the list, Angola, is $19,650,000,000 in debt. South Africa: This country has a debt-to-GDP ratio of 68.8%. Kenyanwallstreet.com is a property of, the top 20 most indebted African countries, Tanzania Exports First Consignment of Processed Cashew Nuts to the US, KCB Tanzania Graduates to Tier 1 Status as Assets Hit TSh1 Trillion, Global Conservation Charity FFI Appoints Najib Balala as Vice President, Fuel Prices in Tanzania Fall for 3rd Time in a Row, How Tech Firms Handle Customer Success, Pawa IT Case Study, Hisa To Represent Kenya at the Final Stage of 2022 MEST Africa Challenge, Construction of Long-Awaited $272 Million Msalato Airport in Dodoma Begins, Vodacom Tanzania to Expand M-PESA Services to 8 SADC Countries, I&M Bank Q3 Earnings Decline 22% to Sh 3.9 Billion. The 20 countries in Africa with the highest migration rates in 2022, according to Statista, are presented below. Although the exact figures of these countries' public debts were not disclosed, the percentage of debt to GDP are clearly indicated as you can see below. The top spot is taken by South Africa, which has $137,500,000,000 of debt and high levels of poverty despite being an upper middle income economy. Ghanas debt to GDP ratio currently stands at 83.5%. Africa-Press Botswana. Obviously in the case of dictatorships like Mugabes this is no easy task, but in many cases there are a number of effective things which can be done. Often expressed as a percentage, this ratio can also be interpreted as the number of years needed to pay back debt if GDP is dedicated entirely to debt repayment, says Investopedia. It measures how much a country owes, in comparison to everything the country produces. ZIMBABWE: 2. South Africa, Guinea Bissau, Eritrea, Ghana, Togo, Sierra Leone, Gabon, Congo, Angola, Mozambique, Kenya and Zambia all have debt totalling more than 70% of their respective gross domestic. Zambia became the first African state to default on its payments to creditors since the start of the COVID-19 . United States of America, USA top Africa diplomat, Tibor Nagy, on Monday warned African countries to be mindful of their debt burden. For instance, unpaid work (such as that performed in the home or by volunteers) and black-market activities are not included because they are difficult to measure and value accurately. These include corruption, mismanagement, and controversial measures by the government such as the land distribution scheme of 2000. Its finances were stung when it issued a $1 billion bond, with a repayment schedule set at a high-level yield of 6.625%. Agricultural industries and other sustainable investments havent yet becomea government priority. Chinese Foreign Minister Wang Yi has hit back against claims that China is increasing the debt burden of African countries.Wang dismissed the allegation as false at a . 20. Troubled European nations such as Cyprus, Ireland, Belgium, Spain, and Portugal also have troubling ratios. Kenya - $9.8 billion 4. The ten most debt laden countries of sub-Saharan Africa (with the percentage of their GDP that debt represents in parentheses) are Eritrea (126%), Cape Verde (122%), Gambia (97%), So Tom and Prncipe (92%), Congo (79%), Ghana (74%), Malawi (73%), Angola (70% ) and Seychelles (65%). So which are the 20 most debt-addled African countries and what are the main factors which got them there? ICELAND: 7. The scale of debt issuances in Africa amounts to only 1% of the continent . A debt-to-GDP ratio of 60% is the IMF's and African Monetary Co-operation Program's threshold for prudent debt levels. Global interest rates are at historic lows and real . Since 2013, the Debt-to-GDP Ratio rose from 33% in 2013 to 53% in 2018. 2022 The Moguldom Nation. API users can feed a custom application. Kenya's debt-to-GDP ratio is 69.7%. Ethiopia - $13.7 billion 3. We have a plan for your needs. Africa needs debt, and it needs to find ways to put it to the best use. He covers corporate Africa, analysing some of the continent's leading companies and the economies in which they operate. Reports say that as of 2020, the total external debts owed by African countries amounted to about $702.4 billion, an increase from $380.9 billion owed by African governments. They are low-income countries and "get highly concessional financing in grant and interest rate free loans which only charge a 0.75% service charge". He said that about six countries which are facing a debt burden are . READ: Ghana, Kenya, Ethiopia and 2 other African countries are about to experience serious debt risks. The debt relief efforts work through multilateral financial organisations including the . Look to number 11 on the list and youll find the Democratic Republic of the Congo with $7,644,000,000 of debt. In Rwanda, we helped increase access to electricity. Sources: TheRichest.com, MapsofWorld.com, IMF.org, UN.org, BBC.com, AllAfrica.com. Eritrea: The national debt in this Horn of Africa country stands at 175.1% of the GDP. The debt of low- and middle-income countries in sub-Saharan Africa increased to a record $702 billion in 2020, according to a new World Bank report released October 11, 2021. There are solutions for the sovereign debt crisis they include specifically for African . This country has a debt-to-GDP ratio of 69.9%. The UNDP said rich countries have the resources to end the debt crisis. The Organisation for Co-operation and Economic Development (OECD) has compiled tax revenue data for countries around the worldincluding 30 African countries, where tax revenue as a percent of GDP is on average lower than in other regions. A debt-to-GDP ratio of 60% is the IMF's and. Angola Angola is the most indebted African country to China. 66.2. In 2000 the country was under a heavy debt burden and had to subscribe to the Highly Indebted Poor Countries initiative with the IMF and the World . the diff between USA debt to China and African debt to China lies in the terms 1. most of us indebtedness to China is in the form of treasury bills and bonds. SINGAPORE: 10. Other producers have left the west African country, citing the adoption of ESG principles and net zero goals. The numbers listed below represent the public debt money or credit owed by any level of government as a percentage of each country's gross . At position number two on the list is Greece (debt-to-GDP ratio of 180%), which continues to struggle . %. Continued high military expenditures will make it difficult for the country to buck its unsustainably high debt. Kenya's total public debt by July this year stood at Ksh8.61 trillion ($71.75 billion), accounting for 68.1 per cent of the gross domestic product (GDP), according to data from the National Treasury. 15 African countries with the highest debt to GDP ratio. Here are the top 10 African borrowers from China and how much was loaned to them since the year 2000. The ability to carry debt varies widely among countries. Save for four countries -- Cape Verde, Djibouti, Congo and Mozambique -- all the other African countries have debt-to-GDP ratio averaging 60%. This is the region's highest debt burden in a decade. In Mozambique, where the IMF paper estimates that the informal sector accounts for 36 per cent of GDP, the debt/GDP ratio jumps from 115.2 per cent to 180.4 per cent when expressed as debt/formal GDP. Its debt-to-GDP ratio is about 103.4% accord Corruption, mismanagement, hyperinflation all have contributed toZimbabwes enormous economic struggles in recent years. And in the case of African countries, weaker and weakened economies, with the obvious prospect of deepening the continent's endemic poverty and causing social dislocation that . It possesses the largest by the purchasing power parity, and maintains the position of being the largest exporter in the world. The Global Hunger Indexscore in Tanzania is the second worst of any other country in the East African Community. Advanced users can use our Python/R/Matlab packages. Abiy Ahmed said his administration has worked very hard to remedy the indebtedness which, back in 2010, led to Ethiopia being added to the "list of high-debt distressed countries". A recent report by the World Bank showed that more than half of the worlds low-income countries, most of which are in Africa, are either currently grappling with debt distress or at risk of doing so. Although the exact figures of these countries public debts were not disclosed, the percentage of debt to GDP is clearly indicated as you can see below. Ghana is at number 7 with $11,230,000,000 of debt, despite its goal to be the first African nation to be judged as a developing country by the year 2029. Please enter your username or email address to reset your password. READ: Ghana, Kenya, Ethiopia and 2. Angola: The Southern African country has a debt-to-GDP ratio of 103.7%. 5. South Sudan has a debt-to-GDP ratio of 64.4%. Analysts projected that increased borrowing is likely to push more countries under debt distress. One-third of countries in . One of the most common is GDP, which represents Gross Domestic Product. This list is courtesy of a report by Statista dated December 2021. We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe. The Gambian government offers $300 in place of an explanation for the death of 70 children, See why African Americans do not want stolen African treasures to be returned back to Africa, Housing in Nigeria would soon become unaffordable according to the Association of Housing Corporations of Nigeria, Ghana, Tanzania, Ethiopia and 30 others are on the World Bank's heavily indebted poor countries' list, 10 richest African countries in 2021 based on gross domestic product (GDP), Debt in low-income [African] countries has climbed to unprecedented heights, and there're more worrisome trends, Ghana, Kenya, Ethiopia and 2 other African countries are about to experience serious debt risks, Kenya set to receive $750 million from World Bank for budgetary support.
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