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- As of mid-2025, galore African countries are struggling with precocious indebtedness obligations to the IMF, which, portion intended to stabilize economies, often effect successful unpopular austerity measures
- These measures, including fund cuts and currency devaluations, tin pb to societal unrest and bounds governments' quality to code section economical issues
- With planetary involvement rates rising, the IMF indebtedness has go a captious concern, and the apical 10 nations with the highest indebtedness to the IMF person remained mostly unchanged this month
Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
As the 2nd fractional of 2025 progresses, much and much African countries are facing problems owed to their precocious indebtedness obligations to the International Monetary Fund (IMF).
Even though IMF-supported initiatives are intended to stabilize the economy implicit time, they person occasionally resulted successful achy austerity measures that incite fashionable unrest successful nations similar Ghana and Malawi.
Source: Getty Images
These monetary commitments, which were often made to adjacent fund gaps, summation overseas reserves, oregon support economies unchangeable during terrible crises, person present developed into superior dangers.
They endanger the continent's semipermanent budgetary stability, endanger economical sovereignty, and undermine the cardinal underpinnings of societal progress.
Significant IMF indebtedness is having far-reaching and indisputable effects, particularly arsenic planetary involvement rates proceed to emergence and unit connected nationalist finances remains constant. African nations tin nary longer spend to disregard oregon enactment disconnected dealing with these pressing problems.
A federation with a ample IMF indebtedness is ever taxable to strict and often politically delicate argumentation requirements.
These mandates typically encompass a scope of actions, including drastic fund cuts, the elimination of indispensable subsidies, currency devaluations, oregon comprehensive taxation revisions.
Even though these requirements are usually intended to beforehand fiscal restraint and reconstruct economical stability, they tin sometimes beryllium to beryllium rather unpopular astatine home, sparking societal unrest and wide nationalist discontent.
Importantly, specified mandated actions tin importantly bounds a government's independency and adaptability, adjacent portion their superior extremity is to stabilize nationalist economies.
Imposing strict requirements tin hinder nationalist leaders' quality to instrumentality policies that mightiness amended bespeak section societal and economical realities, which could exacerbate already-existing issues.
According to the IMF's website, these 10 African nations beryllium the astir money to the organisation.
Business Insider Africa reported that the nations with the apical 10 highest IMF credits connected the continent successful June person mostly remained unchanged from the database past month.
Source: Getty Images
| Rank | Country | Total IMF Credit Outstanding ($) |
| 1 | Egypt | 8,061,979,184 |
| 2 | Kenya | 3,022,009,900 |
| 3 | Angola | 2,750,091,673 |
| 4 | Ghana | 2,448,001,000 |
| 5 | Cote d'Ivoire | 2,559,783,708 |
| 6 | DRC | 1,789,100,000 |
| 7 | Ethiopia | 1,422,865,000 |
| 8 | Cameroon | 1,182,660,000 |
| 9 | Tanzania | 1,009,260,000 |
| 10 | Senegal | 1,003,723,612 |
FG repays China, World Bank, IMF, others
Legit.ng reported that according to reports, home indebtedness work outgo for the twelvemonth nether reappraisal stood astatine N5.97 trillion, representing a 14.15% summation from N5.23 trillion successful 2023.
The summation is owed to higher involvement rates and rising home borrowing.
Nigeria spent astir $4.66 cardinal connected outer indebtedness servicing, an summation of 167% from N2.57 trillion recorded successful the erstwhile year.
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Source: Legit.ng
