Amid rising debt levels across many African nations, a subtle yet significant shift is emerging: several countries are not just minimising their reliance on external borrowing but are also taking deliberate steps to reduce or fully clear their debt to the International Monetary Fund (IMF).
According to July 2025 data from the IMF, Eswatini, Lesotho, and Comoros lead a growing list of countries that hold little or no outstanding debt to the IMF, signalling a notable evolution in debt management, economic policy, and sovereign strategy across the continent.
This trend represents more than just numbers—it reflects a strategic realignment toward fiscal independence, greater resilience, and a desire to reclaim policy space without the constraints often associated with multilateral lending. As of July 21, 2025, the African countries with the lowest outstanding debt to the International Monetary Fund (IMF) are led by Eswatini, with just $9.8 million owed, followed by Lesotho and Comoros, with $11.7 million and $23.4 million, respectively. Other countries maintaining low IMF debt include Sao Tome & Principe, Djibouti, and Equatorial Guinea, with debts ranging from $27 million to $51 million. Guinea-Bissau, Namibia, Cabo Verde, and Somalia complete the top 10, all keeping their IMF credit below $100 million, signaling a trend among these nations toward limited exposure to multilateral borrowing.
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These countries, while varied in size and economic complexity, share one key trait: low exposure to IMF liabilities—a characteristic that can greatly influence their macroeconomic trajectory.
Why IMF Debt Reduction Matters
While IMF financing can be essential during balance-of-payment crises or economic shocks, prolonged reliance on it often comes at the cost of sovereign flexibility. Countries with low or no IMF debt enjoy several strategic advantages:
1. Policy Autonomy
Without binding conditions from IMF programs, governments can prioritise national development goals over externally imposed austerity or fiscal ceilings. This often leads to greater investment in health, education, and infrastructure.
2. Stronger Investor Confidence
Clearing IMF debt can be a positive signal to global markets. It shows fiscal responsibility, can enhance credit ratings, and reduce the cost of borrowing on international capital markets.
3. Resilience in Global Financial Shocks
Countries with reduced multilateral obligations are less vulnerable to foreign policy shocks or restrictive IMF reform measures during global crises.
Nigeria: A Recent Example of Strategic IMF Exit
Nigeria made headlines in May 2025 by fully repaying its $3.4 billion IMF debt, including emergency funds accessed during the COVID-19 crisis. This repayment marked:
– The end of Nigeria’s current IMF exposure
– A move toward fiscal discipline and independent budget planning
– An effort to improve investor confidence amid broader economic reforms
Although Nigeria’s overall debt challenges persist, being free of IMF obligations allows it to negotiate debt restructuring and domestic policy reforms on its own terms.
Ghana: Progress Through Proactive Debt Management
Ghana, while not yet IMF-debt-free, is making measurable progress:
In July 2025, Ghana passed its fourth IMF review, unlocking a $367 million disbursement.
More critically, it secured a debt restructuring agreement with 25 creditor nations, deferring $2.8 billion in debt service until 2026.
Ghana’s path reflects an innovative use of IMF engagement: leveraging the institution to stabilise while also pursuing long-term sustainability through global cooperation.
Sustaining Fiscal Independence
The spotlight on Africa’s debt landscape is often framed in crisis terms, yet these developments reveal a continent increasingly taking control of its fiscal narrative. Countries like Eswatini, Lesotho, and Comoros are managing growth without overreliance on multilateral funding. Others, like Nigeria and Ghana, are navigating exits or restructuring with clear strategic intent.
These efforts contribute to reshaping Africa’s image, not as a debt-distressed region, but as one of adaptive, reform-minded nations striving toward stability and credibility.
To maintain this momentum, African countries should pursue:
- Transparent Fiscal Policy
- Strengthen public finance management to minimise the need for emergency loans.
- Domestic Revenue Mobilisation
- Expand tax bases and formalise economies to reduce dependency on external borrowing.
- Smart Borrowing Frameworks
- Use debt strictly for high-yield infrastructure and productivity projects, ensuring returns exceed borrowing costs.
- Regional Financial Cooperation
- Increase collaboration through regional banks like Afreximbank and the African Development Bank (AfDB) to build alternative safety
- Debt Transparency and Data Reform
- Invest in tools and platforms that track, audit, and report debt metrics in real-time to boost credibility and stakeholder confidence.
