UPDATED: Top 10 African countries facing the biggest IMF debts

African countries are struggling with significant International Monetary Fund (IMF) debt burdens, reflecting high Total IMF Credit Outstanding. The IMF, which promotes global monetary cooperation, extends credit to countries facing economic difficulties.

This support often necessitates economic reforms and policy changes, such as fiscal restraint and improved governance. These countries typically face major balance of payments issues, struggling to pay for imports or meet international financial obligations.

While IMF loans help stabilize economies, strengthen currencies, and restore confidence, they also create substantial debt, posing a future financial challenge.

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However, if not managed properly, IMF loans can harm an economy. Debts generally cause financial stress, and IMF loans often come with strict conditions, such as austerity measures, reduced public spending, subsidy cuts, and tax increases.

These measures aim to correct fiscal imbalances but can lead to social unrest and negatively impact vulnerable populations. Additionally, they can weaken the local currency, exacerbating economic challenges.

According to the IMF, here are the 10 African countries with the highest total IMF credit outstanding as of 07/19/2024

1. Egypt: $10,215,014,179

Egypt tops the list with an outstanding IMF debt exceeding $10.2 billion. The country’s economy has faced numerous challenges in recent years, including political instability, high unemployment rates, and inflation. The COVID-19 pandemic further exacerbated these issues, leading to a significant reduction in tourism, one of Egypt’s main revenue sources.

2. Angola: $2,989,900,003

Angola, with nearly $3 billion in IMF debt, has struggled with economic diversification, relying heavily on oil exports for revenue. The volatility of oil prices has significantly impacted the country’s economy.

Read also: Africa’s 10 most indebted countries

3. Kenya: $2,566,263,300

Kenya owes over $2.5 billion to the IMF, a reflection of its efforts to address economic challenges such as high public debt, fiscal deficits, and the need for infrastructure development.

4. Ghana: $2,303,438,500

Ghana’s IMF debt stands at approximately $2.3 billion. The country has been praised for its stable democratic governance, but economic challenges persist, including public debt and fiscal deficits.

Read also: 10 least indebted African countries in 2024 – IMF

5. Cote d’Ivoire: 2,246,318,672

Cote d’Ivoire owes just over $2.2 billion to the IMF. The country has experienced robust economic growth, yet it faces challenges such as political instability and regional security issues.

6. South Africa: $1,907,000,000

South Africa’s IMF debt is nearly $1.9 billion. The country has faced prolonged economic challenges, including slow growth, high unemployment, and fiscal deficits.

Read also: Top 10 countries indebted to China – World Bank

7. Congo, Democratic Republic of: $1,599,000,000

The Democratic Republic of Congo (DRC) owes approximately $1.5 billion to the IMF. The country is rich in natural resources, yet it faces significant economic and political challenges, including conflict and governance issues.

8. Nigeria: $1,227,250,000

Nigeria, with an IMF debt of approximately $1.23 billion, is Africa’s largest economy. Despite its vast oil resources, the country grapples with economic diversification, infrastructure deficits, and fiscal challenges.

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9. Senegal: $1,143,348,750

Senegal owes around $1.14 billion to the IMF. The country has been recognised for its political stability and economic growth. However, it faces challenges such as high public debt and the need for infrastructure development.

10. Morocco: $1,056,550,000

Morocco’s IMF debt amounts to about $1 billion. The country has maintained relative economic stability, but it faces challenges such as high youth unemployment and regional disparities.