African governments are heading toward a US$90 billion hard-currency debt repayment peak in 2026, a level that significantly raises refinancing and liquidity risks across the continent, according to S&P Global Ratings.
In its latest African sovereign outlook published on Monday, the ratings agency said external government debt repayments have risen sharply over the past decade and are now more than three times higher than they were in 2012. The growing burden is straining foreign-exchange reserves and increasing rollover risks at a time when access to affordable global financing remains limited.
S&P noted that many African countries borrowed heavily during years of low global interest rates, often in foreign currencies. As those debts mature, governments now face higher refinancing costs due to tighter global financial conditions and elevated interest rates in advanced economies.
The agency warned that structurally high debt levels, combined with weaker local currencies and volatile capital flows, are amplifying pressure on external buffers. Countries with limited foreign-exchange reserves or heavy reliance on commercial borrowing are expected to be the most exposed.
S&P added that while some governments are turning to multilateral lenders and bilateral partners to ease near-term pressures, this may not be sufficient to cover the scale of repayments due in 2026. Debt restructuring efforts in countries such as Zambia, Ghana and Ethiopia highlight the broader challenges facing the region.
The ratings agency said stronger fiscal discipline, improved revenue mobilisation and clearer debt management strategies will be critical for African sovereigns to navigate the looming repayment wall and restore investor confidence over the medium term.
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