S&P Global Ratings has projected that African governments will increase their long term commercial borrowing to about $155 billion in 2026, rising from $140 billion recorded in 2025.
The forecast reflects growing financing pressures across the continent, driven by a mix of maturing debt obligations and the need to fund government spending.
According to the report, Africa’s total sovereign commercial debt is expected to exceed $1.2 trillion by the end of 2026, accounting for roughly 45 percent of the region’s gross domestic product.
Despite the increase, borrowing levels among African countries remain relatively modest compared to global peers, largely due to smaller economic sizes and continued reliance on concessional funding from multilateral and bilateral partners.
However, structural challenges persist. African countries often face higher borrowing costs, limited access to international investors, and underdeveloped domestic financial markets, factors that make them more exposed to global financial shocks.
Major economies such as Nigeria, Angola, and Ghana are expected to drive much of the increase in borrowing. This is linked to rising fiscal demands, including pre election spending and renewed investment plans following periods of austerity..
Analysts also note that debt servicing pressures remain significant, with external repayments across Africa projected to approach $90 billion, highlighting ongoing concerns about debt sustainability in several economies.
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