African governments are expected to raise about $155 billion in borrowing this year, underscoring growing financing needs across the continent even as debt pressures continue to mount, according to CNBC Africa.
The projected borrowing reflects a mix of domestic and international debt issuance, as countries seek to fund infrastructure, support economic growth, and manage widening fiscal deficits. Reuters says improved access to global capital markets has allowed several African sovereigns to return to borrowing, particularly as investor appetite for emerging market debt gradually recovers.
However, the rising borrowing comes alongside significant repayment obligations. S&P estimates that African countries will face more than $90 billion in external debt repayments in 2026, highlighting increasing pressure on foreign reserves and raising concerns about refinancing risks.
Despite these challenges, the agency notes that economic growth across the continent is expected to remain relatively strong, with average GDP growth projected at around 4.5 percent. Still, structurally high debt levels and narrow revenue bases continue to pose risks, meaning governments will need to balance borrowing with fiscal discipline to maintain debt sustainability.
