Debt is an important source of financing for development, but it needs to be sustainable. African debt has been growing significantly over the past decade. Explore how much external debt African countries hold, who it is owed to, and how much debt servicing costs countries each year.
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21 low-income countries in Africa are in or at risk of debt distress (66% of countries in or at risk of debt distress)
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African countries owe US$707.9 billion to external creditors as of 2024
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African countries will pay US$84.4 billion in external debt service in 2024
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External debt owed by African countries is equivalent to 26.6% of their combined GDP in 2024
How much do African countries owe?
Africa’s debt stocks have more than doubled in the past decade. Debt plays an important role in supporting economic growth and funding investments in health, education, and infrastructure when domestic resources are insufficient, but it also carries risks. High debt levels and debt servicing costs can divert resources away from essential public services, contribute to economic instability, and make countries more vulnerable to external shocks. As a result of COVID-19, the Russian invasion of Ukraine, and soaring inflation, African countries have had to take on even more debt, and now 21 low income African countries are either bankrupt or at high risk of debt distress.
Africa’s external debt is 26.6% of GDP on average (as of 2024). Many individual countries have rates far higher. Lower levels of debt as a proportion of GDP show that countries produce enough goods and services to pay back debt. Generally debt/GDP ratios above 60% are considered difficult to manage, although this can differ greatly.
Who owns African debt?
The composition of African debt has changed significantly. Before 2000, the majority of African external debt was owed to official creditors—high-income countries that make up the Paris Club and multilateral lenders like the World Bank and IMF. Now, China and private creditors make up a large proportion of debt stocks. These creditors often lend at higher interest rates, with shorter maturities and less transparency, which can increase refinancing risks and debt-servicing costs.
42% of African external debt is owed to private creditors. Bilateral creditors account for 21% and multilateral creditors account for 37% of African external debt as of 2024.
China has become Africa’s biggest bilateral lender. Its public lenders hold almost 9% of Africa’s external debt in 2024, and its private lenders nearly 3% of Africa’s external debt.
How much does Africa pay to service its debt?
African external debt service payments have increased substantially in the past decade, in part due to the increase in private loans. Private creditors tend to charge higher interest rates than multilateral institutions, which generally offer more concessional loans. As a result, countries with a greater share of private debt will face higher debt servicing costs on average. High debt servicing costs can put pressure on government budgets, and increase borrowers’ vulnerability to global financial shocks.
The chart below shows yearly external debt service African countries owe to different creditors. Debt service comprises interest plus principal payments. The chart does not reflect any rescheduling, restructuring, or new debt contracts signed since the end of 2024.
Rising debt costs can force governments to divert resources away from essential public services, with long term impacts on development outcomes. Debt servicing outpaces government spending on healthcare and education in many developing countries. In the latest year for which data is available, 28 countries in Africa spent more on debt servicing than health, and 10 countries spent more on debt servicing than education. Even before the pandemic, more than 30 African countries spent more on debt service than on healthcare. The chart below compares debt service payments to bilateral, multilateral, and private creditors against spending on healthcare and education.
Data and Methodology
This analysis focuses on long-term external public and publicly guaranteed (PPG) debt in African countries, excluding any high-income countries defined by the World Bank income classification. PPG debt is defined as debt with an original maturity of more than one year that is owed by the public sector or by private borrowers with a public guarantee. Short-term external debt and domestic debt are excluded.
All debt stock, debt service, creditor composition, and currency composition data are sourced from the World Bank International Debt Statistics (IDS) database, which provides standardised and internationally comparable data on external debt for low- and middle-income countries. Currency values are in current US$. Estimates exist for years following 2024.
Total government expenditure data in local currency units is collected from the IMF World Economic Outlook and converted to current dollar values. Government expenditure on health is collected from the WHO Global Health Expenditure Database and expenditure on education is collected from UNESCO Institute for Statistics.
Debt sustainability classifications are based on IMF–World Bank Debt Sustainability Analyses (DSAs) for countries eligible for assessment.
Figures reflect the latest available data as of 27 April 2026.
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