Egypt

With SDR 6.73 billion still outstanding, Egypt is by far Africa’s largest debtor to the IMF and one of the biggest globally. Egypt is currently under a 46-month Extended Fund Facility (EFF), complemented by an arrangement under the Resilience and Sustainability Facility (RSF), approved in March 2025. The program supports a far-reaching adjustment that includes currency flexibility, subsidy reforms and fiscal consolidation.

IMF staff project that Egypt’s obligations to the Fund will gradually decline over the life of the program, but for now the country remains heavily exposed. In the November snapshot alone, Cairo repaid more than SDR 164 million, trimming but not transforming its outstanding stock. 

Côte d’Ivoire

Côte d’Ivoire is the second-largest African borrower, with SDR 3.08 billion in IMF credit outstanding as of 12 November. Abidjan is covered by twin arrangements under the Extended Fund Facility and Extended Credit Facility, plus an RSF program aimed at climate and resilience spending. In June 2025 the IMF Board completed the fourth review of these programs and the third RSF review.

Kenya

In third place, Kenya has SDR 2.96 billion outstanding. Since 2021, Nairobi has been under a blended EFF/ECF program supplemented by an RSF arrangement, aimed at stabilising debt, raising revenue and creating space for social and climate spending. The IMF Board concluded the seventh and eighth reviews in October 2024, approving further disbursements.

In 2025, Kenya and the IMF opted not to proceed with a planned ninth review; the government has instead requested a new lending arrangement , seeking to roll over about US$800 million in undrawn funds while grappling with high debt-service costs and public anger over tax hikes.

Angola

Angola, fourth on the list with SDR 2.66 billion in IMF credit. An oil-dependent economy is still living with the legacy of earlier shocks. The country has no recent repayment history yet. Between 2018 and 2021, Luanda undertook an EFF-backed program that pushed through heavy fiscal consolidation, a value-added tax, exchange-rate liberalisation, partial debt reprofiling and steps toward inflation targeting.

Ghana

Ghana, fifth on the list, owes SDR 2.58 billion, equivalent to roughly US$3.5 billion at current SDR rates.  Accra is in the middle of a US$3 billion, three-year Extended Credit Facility approved in May 2023, designed to pull the country out of its worst economic crisis in decades. The IMF completed a third program review in late 2024, allowing a further disbursement of SDR 269.1 million (about US$360 million), while insisting on continued fiscal tightening, restructuring of domestic and external debt, and reforms in areas such as tax administration and state-owned enterprises.  

By mid-2025, Ghana’s parliament had also approved a US$2.8 billion debt relief deal with official bilateral creditors, pushing out payments due between 2022 and 2026 to the 2039–2043 period and helping keep the IMF program on track.

Kenya’s Bold Step: Converting Dollar Debt to Yuan

Some African governments are rethinking how they borrow. Kenya has taken a pioneering step by converting $3.5 billion of loans from China into yuan-denominated debt, a move expected to save the country $215 million annually. This strategy reduces exposure to the strengthening U.S. dollar and signals a broader push toward “de-dollarisation”, diversifying currency options to stabilise national economies and increase fiscal independence.

Angola’s Return to Global Markets

While Kenya experiments with currency diversification, Angola has chosen to re-engage international investors. The country has issued five- and ten-year Eurobonds to raise $1.5 billion, marking its first bond sale since 2022. Led by major global banks including Citi, Deutsche Bank, JPMorgan, and Standard Chartered, the sale points to renewed investor confidence in African economies. Yet, experts warn that poor credit ratings still force many countries to borrow at interest rates as high as 12%, as noted by MacDonald Goanue of the ECOWAS Bank for Investment and Development.

Creative Financing and Regional Solutions

To ease the debt burden, several African nations are adopting innovative financial tools. Securitisation, which allows governments to use future revenue streams as collateral, and debt-for-nature swaps, which forgive debt in exchange for environmental protection, are gaining traction. Additionally, regional banks are offering concessional loans with lower interest rates and longer repayment periods. There is also growing advocacy for trading in African currencies and building stronger regional financial institutions to reduce reliance on Western lenders.

From Necessity to Strategy

Africa ’s debt story is evolving from borrowing out of necessity to borrowing with strategy. However, global inflation, commodity price drops, and geopolitical instability still threaten progress. As Kenya, Angola, and others demonstrate, African countries are reclaiming agency in the global financial system. The focus is shifting from repayment to reimagining the structures that have historically constrained the continent’s growth.

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World Reframed is produced in London by Global South World, part of the Impactum Group. Its editors are Duncan Hooper and Ismail Akwei.

ISSN 2978-4891

The Ghanaian cedi has rebounded sharply, now trading at ¢12.33 to the US dollar, per Bank of Ghana data. This recovery follows a nearly 25% year-to-date depreciation and is attributed to strong central bank interventions and improved dollar inflows from exports. At the interbank level, the cedi buys at ¢12.3138 and sells at ¢12.3262. It also gained against the British pound (¢16.32) and the euro (¢13.72). The central bank cited stabilising market conditions but stressed the need for continued vigilance. Favourable gold export prices and disciplined fiscal policies are key to sustaining the trend, as Ghana continues debt restructuring talks.

Ghana and Afreximbank in dispute over $768m debt

Ghana, emerging from a major debt restructuring, is now in a dispute with Afreximbank over a $768.4 million loan. Ghana wants the loan restructured like its other debts, but Afreximbank insists it holds “preferred creditor status” and should be repaid in full. The disagreement could delay Ghana’s debt resolution and set a precedent for how regional lenders are treated in future restructurings across Africa. Ghana’s Finance Ministry rejects Afreximbank’s claim, saying its debt is not senior to others. Similar issues have complicated debt talks in countries like Zambia, Kenya, and Ethiopia.

Ghana Integrity Initiative targets local communities in anti-corruption drive

The Ghana Integrity Initiative (GII), in partnership with CDD-Ghana and GACC, and with EU funding, organised a two-day capacity-building workshop for citizen groups in Akuapem North Municipality. The training focused on the Public Financial Management Act, 2016, and aimed to empower participants to combat corruption in their communities. GII’s Programs and Research Officer, Mr. Jacob Tetteh Ahuno, highlighted the importance of collective action and the need to mobilise civil society in the fight against corruption. He urged participants to raise awareness through outreach in schools, churches, mosques, and markets. The workshop, themed “Citizens Anti-Corruption Training,” is part of the EU-funded “Strengthening Accountability, Rule of Law, and Institutional Responsiveness in Ghana” project. Attendees included representatives from churches, PWDs, NCCE, CHRAJ, GHABA, traditional leaders, and the media.

UK trade envoy visits Ghana to strengthen economic ties

The British High Commission in Accra has announced that Bell Ribeiro-Addy, the UK’s Trade Envoy to Ghana, will make her first official visit from 19–22 May 2025, with engagements in Accra and Kumasi. Appointed in January by Prime Minister Keir Starmer, Ribeiro-Addy’s visit underscores the UK’s commitment to deepening trade relations and economic cooperation with Ghana. She will meet with key stakeholders, including Finance Minister Dr. Ato Forson, Trade Minister Elizabeth Ofosu-Adjare, Deputy Education Minister Dr. Clement Apaak, traditional leaders, academics, UK businesses, and the GIPC. Discussions will focus on trade expansion, investment, and mutual economic growth.

Ghana's cocoa faces EU ban over heavy metal contamination – Dutch envoy

Ghana risks having its cocoa rejected by the European market due to contamination from heavy metals, warns Jeroen Verheul, Dutch Ambassador to Ghana. He attributed the threat to illegal mining activities, which not only reduce cocoa production but also pollute water sources that could affect cocoa beans. Verheul noted that some farmers are accepting large sums from gold prospectors to give up their cocoa farms, further worsening the decline. Ghana’s cocoa output has dropped significantly in recent years, posing a direct threat to trade, especially with the Netherlands, which imports about 300,000 metric tonnes of cocoa annually. Speaking to The Ghanaian Times , he emphasised the urgent need to address "Galamsey" and protect Ghana’s cocoa industry.

“While Ghana’s current account position has improved due to higher gold and cocoa export earnings and reduced import bills, aid remains an important non-debt-creating source of inflows,” the report stated.

Fitch noted that international aid currently accounts for nearly half of Ghana’s net transfers, making it a critical component of the country’s external accounts. The agency cautioned that a slowdown in aid, particularly from the U.S., could weaken Ghana’s ability to withstand shocks, especially in times of tightened external financing or export underperformance.

Although the country’s gross international reserves recovered in 2024 to $6.95 billion (3.0 months of import cover), sustained stability may depend on the successful completion of debt restructuring programs and renewed capital inflows, according to Fitch.

However, the economy's small size, limited effectiveness of monetary policy, a lack of firm fiscal anchors, and exceptionally high concentration in the tourism sector, which makes it vulnerable to external shocks, balance these strengths. There are also medium- to long-term risks associated with climate change that need to be considered.

On the back of this, Tamatave emphasized that the revised rating demonstrates Fitch Rating's growing optimism regarding Seychelles' creditworthiness.

"This rating shows that Fitch Rating, as a credit rating agency, has become more optimistic about the future of Seychelles' creditworthiness. This also shows that Seychelles' various fiscal and monetary policies adopted by the Central Bank and the government after the COVID-19 pandemic to re-launch the economy are working," Tamatave is quoted by Seychelles News Agency .

The principal secretary noted that Seychelles achieved a primary fiscal surplus of 1.8 percent of GDP in 2023, accompanied by a reduction in debt to 60.1 percent of GDP.

According to the Ratings, Seychelles witnessed a 5.7 percent increase in tourist arrivals and a 5.8 percent rise in tourism earnings in 2023, indicating stabilization following significant growth rates of 82 percent and 59 percent in 2022, respectively.

Tamatave also highlighted the significant contributions of the information and communication technology sector, along with a 2.5 percent growth in the fisheries sector, to Seychelles' economy in 2023.

Brian Commettant, the first deputy governor of the Central Bank of Seychelles, attributed the improved Fitch Rating to the country's augmented foreign exchange reserves. He noted a 5.8 percent increase in foreign exchange inflows in 2023, supporting the rise in reserves from $639 million in 2022 to $682 million in 2023, estimated to cover at least three months of imports.

Despite the positive assessment, the Fitch Ratings report highlighted Seychelles' vulnerability to climate change impacts, particularly its susceptibility to rising sea levels. The nation has experienced heightened storm frequency and intensity, leading to the degradation of coastal infrastructure.

What they said

Further, it said, “A key driver of the downgrade is also the deterioration in Niger’s institutions and governance strength, reflected in the suspension of the constitutional order, with immediate repercussions on the government’s access to international donor support and security cooperation, which otherwise provide key support to Niger’s credit profile.” In addition, “the longer sanctions , including border closures and freezes of service transactions, remain in place, the greater the adverse economic repercussions within the landlocked country.”

In response to Moody's analysis of Egypt’s economy, the country's Minister of Finance, Mohamed Maait, emphasised that the global rating agency failed to consider the government's ongoing efforts to stabilize the economy.

Maait described the current approach to handling Egypt’s economy as one that is flexible and balanced in managing macroeconomic risks, absorbing external shocks, and addressing negative impacts stemming from geopolitical tensions. He highlighted the government's commitment to meeting citizens' basic needs, expanding social protection networks, and maintaining financial discipline.

He further highlighted the success of the government's strategy, leading to an initial surplus of EGP 150 billion (approximately $4.8 billion) in the first half of the current fiscal year (July to December 2023), compared to EGP 25 billion in the same period last fiscal year.

The Finance Minister drew attention to Egypt's ability to meet financing needs over the next two years through its Initial Public Offering (IPO) program, attracting investments and reducing reliance on external financing. He noted the government's withdrawal of $3.5 billion from economic activities under the IPO scheme and access to approximately $5 billion in concessional financing from multilateral development banks.

“This reflects the confidence of these international institutions in the economic path pursued by the Egyptian government through financial policies more capable of achieving financial discipline and maintaining a sustainable primary surplus, along with continuing to implement structural reforms that enhance economic growth by making more room for the private sector,” Maait is quoted by Ahram Online.

Despite expectations of increased financial support from the IMF and the government running a fiscal surplus when debt payments are excluded, Egypt still faces significant challenges. Analysts have pointed to very weak debt metrics and heightened exposure to foreign exchange and interest rate risks. The country is grappling with its most severe economic crisis in decades, triggered by the ongoing conflict between Israel and Hamas.

"We've been able to achieve an interim debt service suspension and therefore able to save around $1.5 billion that would have gone to debt servicing," Mamo informed a parliamentary committee.

The announcement was further corroborated by the Paris Club which described the debt relief agreement as a "debt standstill from Ethiopia's official bilateral creditors," providing a time-limited liquidity relief as the nation gears towards extensive consultations on debt treatment.

Ethiopia has racked up an estimated amount of $28 billion in external debt which is further worsened by soaring inflation, conflicts and shortage of foreign currency reserves. The country engaged in negotiations with bilateral creditors, including China, which has extended loans of around $14 billion, as reported by analysts, the report noted.

Ethiopia's financial struggles have been exacerbated by the two-year conflict in the northern Tigray region, which concluded with a peace deal in November of the previous year. The country estimates a need for about $20 billion to reconstruct the northern regions affected by the conflict, which resulted in an estimated half a million casualties according to U.S. figures.

Early on in November 2023, the Fitch Ratings agency downgraded Ethiopia's debt plunging it deeper into junk territory to CC, a level it said "reflects a probable risk of a default event".