Afreximbank ranks Nigeria third biggest foreign debtor, highlights challenges and opportunities in managing debt levels
By Jeph Ajobaju, Chief Copy Editor
Nigeria as of the first half of 2024 is the third biggest foreign debtor in Africa, after South Africa and Egypt, and one of the 10 countries that account for 69 per cent of the external debt of the continent.
This is disclosed in the latest report of the Africa Export and Import Bank (Afreximbank), titled “African Debt Outlook: A Ray of Optimism”.
The report noted that Africa’s external debt levels remain elevated, primarily due to the limited development of domestic financial markets and high interest rates – but also highlighted challenges and opportunities in managing the debt.
“In the first half of 2024, 10 African nations constituted 69 per cent of the continent’s total external debt stock, up from 67 percent in 2023,” Afreximbank said.
“The countries leading are South Africa (14%), Egypt (13%), Nigeria (8%), Morocco (6%), Mozambique (6%), Angola (5%), Kenya (4%), Ghana (4%), Côte d’Ivoire (3%), and Senegal (3%).
“The growing demand for foreign exchange to finance imports has further exacerbated external indebtedness, fueled by reliance on aid, concessional loans from multilateral institutions, and competitive rates offered by private creditors.
“Since 2008, the external debt of African countries has escalated significantly, reaching approximately US$ 1.16 trillion and representing 60 percent of the region’s total public debt stock as of 2023.
“Projections indicate a slight increase to US$ 1.17 trillion in 2024, with sustained growth anticipated, potentially reaching US$ 1.29 trillion by 2028.”
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