Developing nations across the world face mounting pressure as external debt reached a record $9.4 trillion in 2025, according to the World Bank’s International Debt Report 2026.
By the close of 2025, South Africa owed $1.93 billion while Nigeria’s obligation to China stood at $5.67 billion, as noted in 2025, while South Africa’s debt stood at $1.93 billion. As of June 2025, the central bank of Egypt separately documented $9.6 billion, taking the aggregate documented amount to $17.2 billion.
Low- and middle-income economies paid $1.4 trillion in principal and interest during 2025. Over the course of 2022 to 2025, debt service paid by these nations exceeded fresh financing received by $436 billion.
Nigeria Borrowing Extends Upward Trend
Rising from $3.63 billion in 2021 and $5.32 billion in 2024, Nigeria’s debt to China reached $5.67 billion in 2025, continuing an upward trajectory. China accounts for nearly 85% of Nigeria’s $6.68 billion bilateral external debt.
Much of this borrowing finances railways and transport networks designed to improve connectivity and facilitate trade. However, these investments coincide with severe fiscal pressures and high poverty rates.
In 2025, the World Bank calculated that upwards of 60% of individuals in Nigeria lived under the national poverty threshold. Nigeria’s total external debt reached $145.02 billion that same year.
Egypt Manages High External Obligations
Egypt carries the largest reported Chinese debt among the three economies at $9.6 billion as of June 2025. The country also relies heavily on financing from Gulf governments and international financial institutions.
Saudi Arabia accounted for $13.5 billion of Egypt’s external debt. The United Arab Emirates held $11.7 billion, and Kuwait held $6 billion.
Egypt’s external debt-service payments reached $38.7 billion during the 2024/2025 financial year. Despite these obligations, the World Bank reported a 5.1% economic expansion during the 2025/2026 financial year, while unemployment fell to 5.8% in the second quarter of 2026.
South Africa Relies on Financial Markets
South Africa owed China $1.93 billion at the end of 2025, representing the lowest bilateral Chinese debt balance among the three nations. China accounts for nearly 47% of South Africa’s $4.13 billion bilateral external debt.
Germany holds $1.33 billion of South Africa’s bilateral debt. Unlike Nigeria, South Africa relies more heavily on private creditors and international financial markets.
South Africa’s total external debt reached $206.34 billion in 2025. Statistics South Africa reported that the official unemployment rate reached 33.6% in the second quarter of 2026.
Developing Countries Pay More in Debt Service than New Financing
Across 2022 to 2025, developing nations saw debt service payments surpass newly acquired financing by $436 billion. This dynamic reduces the resources available for long-term domestic development.
“The return of private lending to low- and middle-income countries is welcome, but these countries are borrowing more, paying more, and in many cases leaving less for long-term development,” said Haishan Fu, World Bank official.
The balances reported by the World Bank and the Central Bank of Egypt cover different reporting periods and debt categories.
Common Questions About African Debt
How much do African nations owe China?
By the end of their respective reporting periods in 2025, Egypt recorded $9.6 billion, Nigeria owed China $5.67 billion, and South Africa’s obligation was $1.93 billion.
What is Nigeria’s total external debt?
Public and publicly guaranteed debt owed to multilateral lenders accounted for $31.37 billion of Nigeria’s overall external debt, which hit $145.02 billion in 2025.
Who are Egypt’s main creditors?
Egypt’s external debt includes $13.5 billion from Saudi Arabia, $11.7 billion from the United Arab Emirates, and $6 billion from Kuwait, alongside Chinese financing.
What was the total external debt for developing countries in 2025?
Developing countries’ external debt reached a record $9.4 trillion in 2025, with low- and middle-income economies paying $1.4 trillion in principal and interest.
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