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Government debt as a percentage of Gross Domestic Product (GDP) is an important economic measure that reflects the total amount of a country's public debt relative to the size of its economy.
It essentially compares what a country owes to what it produces annually.
A low debt-to-GDP ratio generally indicates that a country has a manageable debt load and greater financial flexibility, whereas a high ratio may point to potential difficulties in servicing debt obligations and can increase the risk of economic instability.
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As of 2025, several African countries stand out for maintaining some of the lowest government debt-to-GDP ratios.
This reflects varied fiscal policies and economic structures.
Examining their debt trends alongside broader economic indicators offers valuable insights into their current economic health and future prospects.
Why is debt-to-GDP ratio important?
The debt-to-GDP ratio is vital because it helps reveal how easily a country can manage and repay its debt based on its economic output.
A lower ratio typically indicates that the government has sufficient economic strength and fiscal space to handle its obligations, borrow for development projects, and respond to emergencies without risking financial instability.
On the other hand, a high debt-to-GDP ratio may signal potential challenges, such as higher borrowing costs, reduced investor confidence, and limited ability to stimulate the economy during downturns.
Policymakers, investors, and analysts closely watch this ratio to assess a country’s fiscal sustainability, guide economic decisions, and compare financial resilience across countries or periods.
In essence, the debt-to-GDP ratio is a key indicator that reflects the balance between economic growth and debt burden, influencing both national policy and global financial perceptions.
10 African Countries with the Least Debt Burden
Based on IMF data covering 2004 to projections through 2026, the countries with the lowest government debt ratios have followed different paths.
Some have successfully kept their debt relatively stable, while others have seen noticeable fluctuations.
1. DRC (16.5%)
The Democratic Republic of the Congo (DRC), for example, has consistently maintained a very low government debt-to-GDP ratio compared to many of its peers.
Over the past two decades, its debt hovered mostly under 25%, with projections indicating a modest rise to approximately 16.5% in 2025, continuing its tradition of low public debt relative to GDP.
This low debt level provides the DRC with financial room, although it must carefully manage underlying economic challenges.
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Persistent conflicts in the eastern regions hamper the full economic potential. Despite its low government debt, the DRC faces challenges in governance, security, and infrastructure development that need addressing to ensure sustained growth.
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2. Comoros (32.7%)
Comoros has seen a gradual increase in debt over the years, but still remains in the lower range compared to many African nations.
Starting from approximately 20-25% in the early 2000s, its debt ratio has risen steadily, reaching just over 32% by 2025.
This rising trend signals increased borrowing, likely to support infrastructure and social spending, but remains manageable given the size of its economy.
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3. Chad (33.8%)
Chad’s debt ratio has shown some volatility but stayed relatively moderate, rising from about 20% in the early 2000s to a projected 33.8% in 2025.
While still low compared to many other countries, this upward trend requires monitoring to ensure sustainability.
4. Equatorial Guinea (35.9%)
Equatorial Guinea’s debt levels have remained relatively stable but slightly higher than its peers, fluctuating around the mid-30% range.
With a projected 35.9% in 2025, this country continues to balance its debt cautiously amid economic challenges linked to oil dependence.
5. Ethiopia (37.0%)
Ethiopia’s government debt has increased more significantly, rising from about 20% in the early 2000s to an estimated 37% by 2025.
This reflects the country’s extensive public investment programs and economic reforms that require careful debt management.
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Ethiopia is one of Africa’s fastest-growing economies, projected to grow around 6.4% this year. Economic reforms, including the liberalisation of the banking sector and the launch of a stock market, support this robust growth.
6. Burundi (37.2%)
Burundi, while showing a declining debt ratio from extremely high levels in the past (above 150% of GDP in early years), projects to reduce it to around 37% by 2025.
This marks significant progress toward fiscal stability despite ongoing socio-political challenges.
The economy is expected to grow modestly at 3.6%, but high inflation, driven by currency depreciation and fuel shortages, poses significant challenges. Infrastructure investments and mining exports provide some support, but deep structural issues persist.
7. Eswatini (37.8%)
Eswatini forecasts growth of approximately 5.1%, underpinned by investments in infrastructure and energy sectors.
Nonetheless, the economy remains vulnerable to external shocks, including global trade uncertainties and tariffs affecting its trading partners. Debt remains moderate, reflecting cautious fiscal management.
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8. São Tomé and Príncipe (38.0%)
Economic growth is slow, projected at 2.1% in 2025, limited by structural weaknesses and exposure to external shocks. Inflation, while declining, remains a concern.
The government’s ability to manage debt and stimulate diversification will be key to future stability.
9. Cameroon (40.4%)
Cameroon expects moderate growth of 3.6%, supported by infrastructure projects funded partly by European Union loans. Inflation is manageable, and ongoing efforts to improve energy and transport infrastructure bode well for medium-term growth prospects.
10. Guinea (40.8%)
Guinea’s economy is on a strong growth trajectory, forecasted at 7.1%, largely driven by the mining sector, especially bauxite. Inflation is expected to decline, which will support sustainable growth.
Guinea’s moderate debt level coupled with natural resource wealth provides a solid foundation, though governance and infrastructure remain challenges.
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These African countries exemplify how low government debt does not always translate into successful economic performance.
While many maintain manageable debt levels, their economic fortunes differ widely, shaped by factors such as natural resource wealth, political stability, infrastructure, and fiscal policies.
Countries like Ethiopia and Guinea illustrate how strategic reforms and resource management can foster growth despite rising debt.
In contrast, nations like Equatorial Guinea and Chad highlight how economic vulnerabilities can persist even with moderate debt burdens.
Understanding government debt alongside other economic indicators is essential for a nuanced view of these nations’ development trajectories.
With prudent fiscal management and focused economic reforms, these countries can leverage their low debt positions to achieve greater economic resilience and prosperity in the coming years.