Approximately thirty African nations are facing a debt crisis, with over $11 billion in debt payments due this year, according to data released February 26, 2026. The escalating debt burden, despite economic growth, is prompting calls for deeper economic transformation rather than simply balancing public accounts.
Economist Hugues Mbadinga Madiya, a former Gabonese minister, argues that the recurring debt crises—which have plagued the continent since the 1973 oil shock, appearing roughly every decade—stem from a lack of diversification and value addition within African economies. “The reality is an insufficiency of transformation that keeps us in a very low position in international value chains,” Madiya stated. He pointed to examples like Botswana and Gabon, where initiatives to process raw materials have yielded positive results, tripling the value added in Gabon’s timber sector.
The situation is particularly acute for Senegal, which faces $485 million in debt payments in the coming weeks. Across the continent, countries are experiencing high-risk premiums on financial markets, increasing the cost of borrowing. According to data from the African Development Bank, total African external debt reached a record $1.152 trillion USD in 2023, with debt service totaling over $163 billion USD—a significant increase from the $61 billion USD recorded in 2010.
Several nations, including Ethiopia, Ghana, and Zambia, have already begun debt restructuring processes, utilizing the Common Framework for Debt Treatment, a joint initiative by the IMF and the G20. However, the scale of the problem suggests that more countries may seek assistance from international organizations to manage their debt obligations, balancing repayment with necessary investments in crucial sectors like education and healthcare.
Madiya emphasized that sound fiscal management and monetary policy are not sufficient to break the cycle of debt. “A well-managed budget, a credible currency, well-managed reserves, that’s important, but it’s not enough,” he said. The focus, he argues, must be on investing in local transformation and adding value to resources.
The debt crisis is occurring despite a period of economic growth in many African nations. As of 2023, 27 African countries had debt levels exceeding 60% of their GDP, raising concerns about long-term sustainability. The amount of Foreign Direct Investment (FDI) attracted by Africa in 2023 was $48 billion USD, significantly less than the $163 billion USD spent on debt service.
In Gabon, President Ali Bongo Ondimba initiated a plan to reimburse domestic debt, aiming to restore trust between the government and businesses and stimulate economic recovery. The initiative, announced through the President’s Chief of Staff, builds on earlier measures to combat corruption and improve the business climate.
