What African countries are in debt? (2023)

Which African country has the most debt?

This list is courtesy of a report by Statista dated December, 2021. 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. Eritrea: The national debt in this Horn of Africa country stands at 175.1% of the GDP.

You might be surprised. According to data published by London-based investment fintech Invezz, Japan, Greece, Italy, Portugal, and the US are the top five countries with the highest level of government debt.

Most of Africa's debts to China are owed by five states – Angola, Ethiopia, Kenya, Nigeria and Zambia.

More than 40% of African debt is owed to private creditors, 26.6% to bilateral creditors, and 32.5% to multilateral creditors.

While China is the continent's biggest bilateral creditor, most of the debt is due to private Western holders of African debt, according to the researchers. Capital, in the form of debt repayments, thus continued to flow from Africa to Europe and North America, the study said.

Over the last two decades, China has established itself as Africa's largest bilateral lender, helping bankroll key infrastructure projects on the continent.

Which country owes money to China?

COLOMBO: Sri Lanka, Pakistan and Maldives are among the biggest debtors of China. Pakistan owes $77.3 billion of external debt to China, according to Forbes. Maldives' debt is 31 per cent of its Gross National Income (GNI).

Public Debt

The public holds over $24.29 trillion of the national debt. 1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds.

Get ready for this statistic – China owns 981 billion dollars in U.S debt. That means we owe China nearly a trillion dollars!

Africa's debt payments will remain high

Africa still has to pay US$69 billion in debt repayments in 2021, with another US$185 billion due between 2022 and 2024. Foreign debt payments were 15.5% of Africa's exports in 2020 — up from 11.7% in 2019 and three times the 5.3% in 2011.

Of 24 African countries that spent more than 15% of government revenue servicing debt in 2021, six countries - Angola, Cameroon, Republic of Congo, Djibouti, Ethiopia and Zambia - sent over a third of debt payments to Chinese lenders. Other private creditors accounted for over a third of payments in 12 countries.

Only a handful of African countries, like Nigeria, Morocco, and Kenya have enough resources to print their own currencies or mint their own coins, and even they sometimes supplement production with imports.

Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt. Nonetheless, governments may face severe pressure from lending countries.

This debt is further broken down in data by the Bank for International Settlements. Exposure to Russian debt was highest in Italy and France, where upwards of $25 billion was owed each at the end of the third quarter of 2021. In Austria and the U.S., exposure stood at $17.5 billion and $14.7 billion, respectively.

Global debt is borrowing by governments, businesses and people, and it's at dangerously high levels.

Why is US debt so high?

Since the government almost always spends more than it takes in via taxes and other revenue, the national debt continues to rise. To finance federal budget deficits, the U.S. government issues government bonds, known as Treasuries.

Can the U.S. Pay Off its Debt? As budget deficits are one of the factors that contribute to the national debt, the U.S. can take measures to pay off its debt through budget surpluses. The last time that the U.S. held a budget surplus was in 2001.

Behind Japan, the four countries with the largest U.S. debt holdings are China at $967.8 billion, the U.K. at $615.4 billion, Luxembourg at $306.8 billion and the Cayman Islands at $300.4 billion.

Key Takeaways. China, which owns an estimated $972 billion in U.S. Treasuries, is the number-two investor among foreign governments.

U.S. debt to China comes in the form of U.S. Treasuries, largely due to their safety and stability. Although there are worries about China selling off U.S. debt, which would hamper economic growth, doing so in large amounts poses risks for China as well, making it unlikely to happen.

The country's net economic power would increase as more money was spent on goods and non-financial services—production rather than monetary intermediaries. We would be back to being able to consume what our country's economic capacity could produce. One in four of us live that way today.

Nigeria's external debt owed to China accounts for 83.57 percent of its total bilateral debt as of June 30, 2022, totalling $3.9 billion, a 12.7 percent increase from $3.5 billion in the same period last year, according to data from the Debt Management Office (DMO).

Africa as a whole has abundant natural resources, but much of its economy has remained predominantly agricultural, and subsistence farming still engages more than 60 percent of the population.

The Debt Management Office (DMO) says Nigeria took loans worth $31.98 billion from World Bank Group, International Monetary Fund (IMF), African Development Bank (AfDB) Group and others as of September 2020. This is contained in the September 30, 2020, debt stock report recently released by the DMO.

Is Africa benefiting from China?

The fruitful results of China-Africa cooperation can be seen across the continent. It has improved the conditions for economic and social development in Africa and brought tangible benefits to people in both China and Africa.

The National Debt Explained

money from federal income tax), a budget deficit results. To pay for this deficit, the federal government borrows money by selling marketable securities such as Treasury bonds, bills, notes, floating rate notes, and Treasury inflation-protected securities (TIPS).

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

President Andrew Jackson Cuts Debt to Zero

By selling federally owned western lands and blocking spending on infrastructure projects, Jackson paid off the national debt after six years in office. This actually created a government surplus that Jackson divided among indebted states.

The value of U.S. Treasury securities held by residents of Russia amounted to over two billion U.S. dollars in September 2022, slightly increasing from the previous month.

What Would Happen if China Were to Call In Its Debt? China's position as the largest foreign holder of U.S. debt gives it some political leverage. It is responsible for lower interest rates and cheap consumer goods. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth.

According to U.S. Department of Agriculture (USDA) reports, Chinese investors' holdings of U.S. agricultural land surged from 13,720 acres in 2010 to 352,140 acres in 2020.

China loaned a total of $143 billion to African governments and state-owned enterprises between 2000 and 2017. In 2020, the African countries with the largest Chinese debt were Angola ($25 billion), Ethiopia ($13.5 billion), Zambia ($7.4 billion), the Republic of the Congo ($7.3 billion), and Sudan ($6.4 billion).

Which African country is the richest in the world?

Public Debt

The public holds over $24.29 trillion of the national debt. 1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds.

In the first quarter of 2022, Nigeria's public debt rose to N41. 6 trillion from N39. 56 trillion recorded at the end of December 2021, putting enormous pressure on debt servicing.

Nigeria has been dubbed “Africa's Giant” due to its population of almost 200 million people. Nigeria is Africa's most populated country. It is also the world's most populated black country, placing eighth among the world's most populous countries.

North America has the highest continental gdp per capita by both GDP Nominal and PPP in the world. With $46,160 in nominal terms, the per capita gdp of North America is 376% of the world GDP per capita.

That said, below are 10 poorest countries in Africa based on low GDP per capita. Burundi: Has a GPD per capita of $239 according to the World Bank. Mozambique: Has a GPD per capita of $448.5 according to the World Bank. Madagascar: Has a GPD per capita of $471.5 according to the World Bank.