10 African economies expected to struggle the most in 2025

Few African countries face economic challenges due to low current account balances, indicating reliance on external financing. This depletes foreign reserves and drives dependence on costly external loans, creating a debt cycle that strains resources.

High global interest rates further increase debt repayment costs, limiting funds for critical sectors like infrastructure, healthcare, and education.

Addressing these challenges requires structural reforms, revenue diversification, and strategies to boost foreign exchange earnings, which will shape their economic future.

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According to the World Economic Outlook by the IMF, here are the top 10 African economies expected to struggle the most in 2025.

Mozambique is expected to have the lowest current account balance in 2025, with a deficit of –30.0% of GDP. This reflects a high dependence on imports, foreign aid, and external borrowing. The country continues to invest in infrastructure and energy projects, which contribute to the deficit. However, global economic conditions and commodity prices will play a crucial role in shaping its financial stability.

Liberia follows with a projected current account balance of –21.9%. The country’s economy relies heavily on commodity exports, including rubber and iron ore. Fluctuations in global demand and investment inflows will influence its economic outlook. Limited industrial diversification and external debt obligations are also contributing factors to its projected deficit.

Burundi is expected to record of –21.8% deficit. The country faces structural economic challenges, including limited export earnings, dependency on agriculture, and a narrow industrial base. Its economic prospects are influenced by external aid and trade policies with neighbouring countries.

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Namibia is projected to have a –17.0% current account deficit. Despite a strong mining sector, the country remains vulnerable to external shocks, particularly fluctuations in commodity prices. Dependence on imports and external loans continues to affect its balance of payments.

Malawi’s projected deficit stands at –13.8%. The country relies heavily on agricultural exports, particularly tobacco, which accounts for a significant portion of foreign exchange earnings. Climate-related disruptions and global price fluctuations impact its ability to maintain a stable current account balance.

Rwanda is expected to record a –11.0% deficit. The country has seen rapid economic growth, but high import costs related to infrastructure development contribute to the shortfall. Rwanda continues to focus on industrialisation and export diversification to improve its financial standing.

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Seychelles has a projected current account deficit of –10.1%. The country’s economy is largely dependent on tourism, making it susceptible to external shocks. The COVID-19 pandemic underscored the vulnerability of tourism-dependent economies, and while the sector is recovering, uncertainties remain.

Somalia follows with a projected deficit of –9.0%. The country has faced long-standing economic and security challenges. Dependence on remittances and external assistance continues to shape its economic landscape. Limited industrial output and weak export sectors contribute to the projected deficit.

Guinea is expected to have a –8.8% current account deficit. The country’s economy is resource-driven, with mining playing a key role in foreign exchange earnings. However, infrastructure gaps and global market fluctuations pose risks to its financial position.

Mauritania rounds out the list with a projected deficit of –8.7%. The country’s economy is dependent on extractive industries, particularly iron ore, fisheries, and offshore gas projects. External market conditions and investment inflows will influence its financial trajectory.