Top 10 African countries with the most vulnerable import cover

Import cover measures how many months a country can sustain its imports using existing foreign exchange reserves, without needing additional foreign currency. It is a key indicator of economic resilience, with low import cover signalling vulnerability and reliance on external support.

According to the 2024 African Trade Report, titled “Climate Implications of the AfCFTA Implementation,” the Capital inflows boosted the continent’s reserves, driven by greenfield projects, support from development finance institutions, bilateral partners, improved tourism, and remittances.

Africa’s average import cover increased to 5 months in 2023, up from 4.7 months in 2022, surpassing the IMF’s benchmark of 3 months. Nigeria, in particular, boasts an import cover of 5.7 months.

Read also: Top 10 African countries with the most resilient import cover

While several African nations maintain healthy reserves, comfortably exceeding the 3-month threshold, others struggle to meet this criterion, exposing them to economic vulnerability and import dependence.

Here are the top 10 African countries with the most vulnerable import cover

1. Zimbabwe – 0.3 Months

Zimbabwe ranks first on the list with an import cover of only 0.3 months. This means that the country has reserves to cover less than 10 days of imports. The nation’s economic instability, inflation, and limited foreign investment have made it difficult to maintain an adequate level of foreign exchange reserves.

2. Ethiopia – 0.3 Months

Like Zimbabwe, Ethiopia’s import cover stands at 0.3 months. The country’s ongoing challenges, including conflict in certain regions, high inflation, and a shortage of foreign exchange, have severely constrained its ability to fund imports. The government has implemented measures to ration foreign currency, but the situation remains critical.

Read also: Top 10 African countries with the largest intra-African imports growth

3. Sudan – 0.4 Months

Sudan, with an import cover of 0.4 months, has been struggling due to a combination of economic sanctions, internal conflict, and political instability. Its limited access to international markets and foreign reserves has worsened its ability to finance imports, leading to a significant economic crisis.

4. Burundi – 0.7 Months

Burundi’s import cover of 0.7 months reflects its low level of foreign exchange reserves. The country’s economy is largely reliant on agriculture, with limited export diversification, making it vulnerable to external shocks. Political instability and weak governance have also contributed to its foreign exchange challenges.

Read also: Top 10 African countries with the largest intra-African exports growth

5. Burkina Faso – 0.9 Months

Burkina Faso has an import cover of 0.9 months. The country faces economic challenges, exacerbated by security concerns in the Sahel region, which have hindered foreign investment and economic growth. Its reserves are inadequate to support sustainable levels of imports, impacting its economic stability.

6. Congo Republic – 1.2 Months

With 1.2 months of import cover, the Congo Republic is slightly better off than the previous countries but still faces significant economic challenges. The country’s heavy reliance on oil exports, coupled with fluctuating global oil prices, has affected its ability to maintain consistent foreign exchange reserves.

Read also: Top 10 African countries with largest crude oil import

7. Djibouti – 1.4 Months

Djibouti, with an import cover of 1.4 months, faces limitations due to its small economy and heavy reliance on trade and foreign investment. While its strategic location as a port hub offers some economic advantages, its reserves are insufficient to cover a prolonged import demand.

8. Chad – 1.7 Months

Chad, with an import cover of 1.7 months, has a similar reliance on oil exports as the Congo Republic. However, frequent economic shocks, conflict, and fluctuating oil revenues have left the country with limited reserves to support its import needs.

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9. Democratic Republic of Congo – 1.7 Months

The Democratic Republic of Congo also has an import cover of 1.7 months. Despite its vast natural resources, the country has struggled to accumulate foreign reserves due to governance issues, internal conflict, and underdeveloped infrastructure. This limits its capacity to sustain imports and invest in economic growth.

10. Malawi – 1.7 Months

Malawi rounds out the list with an import cover of 1.7 months. The country’s small economy, which is heavily reliant on agriculture, faces challenges due to frequent droughts, limited diversification, and a lack of foreign investment. These factors contribute to its low level of foreign exchange reserves.