Africa's Debt Crisis: Maghreb Region Illustrates Continent-Wide Concerns
According to the latest report from Business Insider Africa, the Maghreb region exemplifies the debt spiral affecting the African continent, with a total external debt of $176.48 billion in 2025, divided among Egypt, Morocco, and Tunisia. This situation highlights the vulnerabilities of a development model heavily reliant on external financing, while the continent's overall debt has more than doubled in 15 years.
Egypt
With a debt of $103.75 billion, Egypt, ranking 50th globally, is the most indebted African country, revealing the contradictions of modernization financed by borrowing. Certain large-scale national projects, such as the creation of a new administrative capital and the modernization of the Suez Canal, have undoubtedly transformed the country. However, this has led to rampant inflation and a constant devaluation of the Egyptian pound.
Morocco
With a debt of $45.65 billion (66th globally), the Kingdom of Morocco, the fourth most indebted African country, has opted for strategic investments. Its debt strategy, focused on green energy and industrialization, reflects a clear vision but raises questions about long-term financial sustainability.
Tunisia
Tunisia, ranking 81st globally with a debt of $27.08 billion, is struggling to recover from a decade marked by political and economic instability and has become trapped in a vicious cycle of debt after the revolution. Difficult discussions with the IMF illustrate the challenge the country faces in balancing structural reforms and social demands.
The Worrying Trend of Debt in Africa
The debt situation in Africa is evolving in a concerning manner, and the level of indebtedness in the Maghreb region is only one visible facet of a phenomenon affecting the entire continent. According to Afreximbank statistics, Africa's external debt has doubled as a proportion of GDP over a 15-year period, rising from 18.8% in 2008 to an alarming 41.6% in 2023. This rapid growth is the result of a series of incidents that have weakened African economies: the 2008 financial crisis, the COVID-19 pandemic, and, more recently, the economic upheavals associated with the Ukrainian conflict. This debt spiral has a significant impact on the continent's development.
Top 10 Most Indebted African Countries
In 2023, ten countries held 67% of Africa's external debt, highlighting an alarming concentration of financial risk. This context exposes the continent to increased vulnerability to external economic shocks, as revealed by the recent instability in commodity prices.
- Egypt: $103.75 billion (50th globally)
- South Africa: $58.77 billion (56th globally)
- Angola: $45.77 billion (65th globally)
- Morocco: $45.65 billion (66th globally)
- Sudan: $37.85 billion (72nd globally)
- Nigeria: $32.46 billion (76th globally)
- Kenya: $30.51 billion (77th globally)
- Tunisia: $27.08 billion (81st globally)
- Ethiopia: $25.76 billion (83rd globally)
- Ghana: $22.55 billion (85th globally)
