Top 10 African Countries with the Lowest Public Debt in 2026

In Summary

·       As borrowing costs remain high and debt pressures continue to strain many African economies, a small group of countries is entering 2026 with comparatively low public debt levels.

·       Measured by total public debt as a share of GDP these countries stand out not only where they are today but for the deliberate choices and circumstances that shaped their debt.

Deep Dive!!!

Thursday, 8 January 2026- Africa’s debt story is often told through sweeping generalizations, with headlines suggesting that most countries on the continent are weighed down by loans and repayments. While this holds true for some economies, it does not reflect the full picture.

According to recent debt sustainability assessments by the International Monetary Fund (IMF), World Bank estimates, and 2024–2025 national budget statements, a number of African countries have managed to keep total public debt relatively low when measured against the size of their economies. In many cases, this has been achieved through debt relief, cautious borrowing, reliance on grants, or revenues from natural resources.

This article examines the ten African countries projected to carry the lowest public debt in 2026. Debt levels are measured primarily as a percentage of GDP, using the latest available IMF and World Bank data, supplemented by government budget disclosures and official finance ministry statements.

10.Comoros

Data from IMF debt sustainability analyses shows that Comoros once carried public debt exceeding 60 percent of GDP in the early 2010s. Much of this burden stemmed from accumulated arrears and limited domestic revenue capacity.

Following comprehensive debt relief under the Heavily Indebted Poor Countries initiative, Comoros saw a sharp reduction in outstanding obligations. According to recent government budget figures and IMF projections, total public debt now stands at approximately 30 to 35 percent of GDP heading into 2026.

This improvement has been supported by low-interest concessional borrowing, steady remittance inflows recorded in central bank data, and gradual fiscal consolidation measures outlined in recent national budgets.

9.Libya

Libya’s debt data, drawn from IMF country reports and central bank disclosures, shows that the country has historically carried very low public debt. Before the 2011 uprising that led to the fall of Muammar Gaddafi, Libya had virtually no sovereign debt.

Since then, years of political fragmentation and intermittent armed conflict between rival administrations have limited Libya’s access to international credit markets. As a result, IMF estimates place Libya’s total public debt below 20 percent of GDP entering 2026.

Oil revenues, reported by Libya’s National Oil Corporation, continue to fund a large share of public spending. However, the IMF notes that this low debt level reflects constrained borrowing rather than a structured debt strategy, making the position vulnerable if reconstruction spending accelerates.

8.Equatorial Guinea

World Bank debt statistics show that Equatorial Guinea’s public debt rose sharply during the mid-2010s as oil prices declined and government spending remained elevated, pushing debt toward 45 percent of GDP.

More recent IMF estimates indicate that higher hydrocarbon revenues have reduced the need for borrowing. As of 2026, total public debt is estimated at around 35 percent of GDP. Budget disclosures from the Ministry of Finance confirm that oil revenues continue to finance a significant share of expenditure.

While this has eased debt pressures, IMF assessments caution that the country’s heavy reliance on oil exposes its debt position to global price volatility.

7.Djibouti

Djibouti’s debt journey is well documented in IMF Article IV consultations. Large-scale infrastructure investments, particularly in ports, railways, and logistics, pushed public debt above 70 percent of GDP by the late 2010s.

Since then, government budget reports and IMF projections show a gradual decline in debt levels. By 2026, total public debt is expected to fall to around 45 percent of GDP, reflecting tighter borrowing controls, improved procurement practices, and a shift toward concessional financing.

Revenue diversification efforts highlighted in recent budget statements have also contributed to stabilizing public finances.

6.Guinea-Bissau

According to World Bank and IMF data, Guinea-Bissau’s public debt peaked at just over 60 percent of GDP in the mid-2010s, largely financed through concessional loans and external assistance.

Political instability and a narrow export base have since limited access to new borrowing. Recent IMF projections place total public debt at around 40 percent of GDP heading into 2026. While this keeps repayment pressures relatively low, official reports acknowledge that constrained financing has also slowed investment and growth.

5.Chad

Chad’s debt profile, as outlined in IMF debt sustainability reports, deteriorated in the late 2010s when public debt exceeded 50 percent of GDP due to oil-backed borrowing and falling energy prices.

Debt restructuring agreements with creditors, combined with improved oil revenues reported in recent budget statements, have eased pressure. IMF projections now place total public debt at around 40 percent of GDP entering 2026. However, IMF assessments continue to flag Chad’s exposure to commodity price fluctuations as a key risk.

4.Lesotho

Lesotho’s public debt exceeded 60 percent of GDP earlier in the decade, according to World Bank data, reflecting limited fiscal space and financing pressures.

Recent national budgets show that stronger inflows from the Southern African Customs Union and water royalties from South Africa have transformed the debt outlook. These revenues have been used to reduce borrowing and retire higher-cost debt. IMF estimates place total public debt at approximately 35 percent of GDP heading into 2026, supported by firm expenditure controls and reserve accumulation.

3.Somalia

Somalia’s debt history is among the most extreme on the continent. IMF records show that for years, public debt exceeded 130 percent of GDP, largely due to decades of arrears accumulated during state collapse and conflict.

Following debt relief under the Heavily Indebted Poor Countries initiative, much of this legacy debt was cancelled. IMF and World Bank data now place Somalia’s total public debt at around 35 to 38 percent of GDP entering 2026. Government finance reports indicate that borrowing is now largely limited to grants and highly concessional loans, supported by improved domestic revenue collection.

2.Democratic Republic of Congo

IMF data shows that the Democratic Republic of Congo has maintained relatively low public debt over the past decade. In the mid-2010s, debt hovered around 30 percent of GDP.

Recent national budget statements and IMF projections indicate that total public debt remains below 35 percent of GDP heading into 2026. In absolute terms, the debt stock remains modest relative to the size of the economy and the country’s mineral exports. Improved debt monitoring by the Finance Ministry and increased domestic revenue collection have helped contain borrowing.

1.Botswana

Botswana’s debt discipline is well documented in IMF and government finance reports. In the early 2010s, public debt stood at around 15 percent of GDP.

According to recent budget disclosures, debt rose to roughly 30 percent of GDP by 2020 due to economic pressures and targeted public spending. IMF estimates place total public debt at around 32 to 35 percent of GDP heading into 2026, comfortably below the country’s legal ceiling of 40 percent.

Strong diamond revenues reported through the Debswana partnership, savings accumulated in the Pula Fund, and consistent adherence to borrowing limits have kept Botswana at the top of Africa’s low-debt rankings.