In a continent-wide fiscal environment marked by growing debt concerns, ten African countries have recorded the most significant improvements in their government debt positions between 2024 and 2025, according to the Africa Pulse report by the World Bank.
The countries, identified in a recent Business Insider Africa publication, achieved the lowest increases, or notable reductions, in general government debt as a percentage of GDP, signaling more prudent borrowing and better macroeconomic management.
While debt is often used to finance development, a slower pace of accumulation helps preserve stability, boost investor confidence, and reduce inflationary risks.
At the top of the list is Zimbabwe, which cut its debt-to-GDP ratio from 93.3% in 2024 to 64.6% in 2025.
Eritrea followed with a decline from 211.8% to 202.4%, while Malawi recorded a drop from 90.2% to 81.9%.
Low debt growth is often tied to strong fiscal planning, improved revenue generation, and a deliberate effort to avoid unsustainable borrowing, especially from central banks.
Countries that demonstrate such discipline are typically more attractive to investors and face lower debt servicing costs.
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Here are the 10 African countries with the lowest increase in general government debt (as a measure of debt-to-GDP ratio) from 2024 to 2025, according to the Africa Pulse report by the World Bank:
— Zimbabwe – 64.6% in 2025, down from 93.3% in 2024
— Eritrea – 202.4% down from 211.8%
— Malawi – 81.9% down from 90.2%
— Senegal – 99.9% down from 105.9%
— Gambia – 64.8% down from 70.6%
— Cabo Verde – 104.6% down from 110.2%
— São Tomé and Príncipe – 40.3% down from 45.7%
— Sudan – 142.7% down from 147.4%
— Ghana – 66.4% down from 70.5%
— Sierra Leone – 37.9% down from 41.8%
The trend underscores how countries with tighter control over public finances are better positioned to navigate external shocks, maintain policy credibility, and prioritize spending on long-term development rather than debt servicing.
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