The 8 African countries with the highest levels of public debt

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December 4, 2017 12:33 PM

The World Economic Forum's Global Competitiveness Survey examines the financial health and risks of countries around the world.

We are now living in a world where interest rates are super-low, even negative in some cases, across some of the richest nations.

This means it is cheaper for people and governments to service their debts while also promoting spending.

The World Economic Forum's Global Competitiveness Survey looks at the financial health and risks of countries around the world.

One of the most interesting and important rankings is actually the level of government debt. Business Insider Sub Sahran Africa looks at the 8 African countries with the highest level of government debt.

8. Seychelles - 69.5%.It is an archipelago of 115 islands in the Indian Ocean, off East Africa. It's home to numerous beaches. It has a population of 500, 000 and a GDP of $1.4 billion

7. Ghana - 72.4%.Most problematic factors for doing business is access to financing. The West African country has a population of 27.6 and a GDP of $43.3 billion.

6. Zimbabwe - 75.3%. The East African country has a population of 14.5 and a GDP of $14.5 billion. Policy instability is the major problem for doing business in the country.

5. Egypt — 97.1%. Following a period of economic turmoil after Egypt's Arab Spring, the Central Bank of Egypt announced in April this year that the country's public debt has increased significantly, a figure which is being driven up in a vicious circle driven by the current budget deficit.

4. Mauritania — 99.6%. The Islamic Republic of Mauritania is a huge country with a tiny population of 4.3 million located in Northwest Africa. The IMF said in 2016 that its high level of public debt was linked to a 30% decline in the price of iron ore, which accounts for nearly 50% of its exports.

3. Mozambique — 115.2%. Mozambique's public debt has been the subject of international controversy this year, after the IMF pulled its budget support for the tiny African state when it emerged the country had misinformed the fund about the size of its debts.

2. Gambia — 116.1%. Public debt is a growing problem in the small West African nation. Debt servicing occupies around half of the government's budget revenues, impairing the authorities' efforts to support the ailing economy.

1. Cape Verde — 133.8%. The tiny archipelago's economy has been characterised by weak economic growth over the past five years, partly due to its heavy dependence on the Eurozone, which experienced a crisis. Its economy appears to be ticking upwards, but an IMF team visiting last year warned "Despite the positive outlook, the IMF team pointed out that “growing debt and weak economic growth associated with the appreciation of the dollar have increased the debt risk," according to the Expresso das Ilhas newspaper.

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