5 COUNTRIES WITH THE HIGHEST DEBT- TO- GDP RATIO IN AFRICA
GDP RATIO IN AFRICA. Debt-to-Gdp ratio is a metric that is used by economists to compare a country’s gross national debt and its gross domestic product. Meaning that the debt-to-Gdp is used for measuring a country’s debt, in comparison to all the things the country produces.
When this is measured, it enables multilateral lenders and other decision-makers to gain insight into how a country is capable of paying back its debts within a given period of time.
A report from the World Bank shows that almost half of the low-income countries in the world, are currently grappling with the distress of debt or they are at risk of doing so. Here is a list of the African countries with high debt -to- Gdp ratios.
LIST OF 5 AFRICAN COUNTRIES WITH THE HIGHEST DEBT-TO -GDP RATIO
1. FIRSTLY, ERITREA
The data showed that they ate the first African country with the highest debt-to-Gdp ratio. Their national debt stands at 175.1% of the GDP. Several factors, such as climate change issues and policy options, famines, and recurrent war may have affected Eritrea’s economy.
In 2020, their estimated national debt wad around 3.87 billion dollars. This has thus rendered the country to be noted among the poorest countries in Africa.
2. SECONDLY, MOZAMBIQUE
is also one of the African countries with a high debt-to- Gdp ratio. The debt ratio is about 133.6%. This debt also includes debts of the states, the communities, the municipalities, as well as the social insurance. Considering the current GDP debt ratio, there has been an increase, as in 20220, their national debt ratio was approximately 119.2%.
3. ALSO, ANGOLA
Angola is a Southern African country. It has a high debt -to- Gdp ratio of 103.7%. Angola, as compared with other African countries shows that its GDP percentage has indeed worsened. It is thus ranked ad the 182nd country in debt out of the 190 countries in the world.
4. ANOTHER IS ZAMBIA
Zambia has a gross national debt of 101%. There has been quite an increase in the debt-to-Gdp ratio of Zambia from the year 2018 to date. According to the World Bank, Zambia is the 8th African country with a high debt-to Gdp ratio.
5. LASTLY, THE REPUBLIC OF CONGO
Congo is located in the Central part of Africa. It has a debt-to- Gdp ratio of 85.4%. This shows that Congo’s debt rate is decreasing, looking at the percentage that was recorded by the World Bank.
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