While many other African nations face a high debt burden, Algeria's already low debt keeps falling to a projected 0.09% in 2025

  • Algeria’s debt service per GDP dropped from 0.77% in 2009 to a projected 0.09% in 2025.
  • The country’s debt service per GDP declined at a -11.9% CAGR from 2009–2025.
  • A high of 0.73% occurred in 2012 before the consistent decline resumed.
  • By 2015, the country's debt service fell to 0.27%, showing progress in reduction.
  • The lowest point is forecast for 2025, at 0.09% of GDP.
  • Algeria’s debt burden is among the lowest in Africa, contrasting with the rising trend in many other nations.
  • This low debt service level allows for greater fiscal flexibility in public spending and investment.

Algeria has maintained one of the lowest debt service-to-GDP ratios in Africa over the past decade and a half, and this trend is projected to continue. From 0.77% in 2009, the figure declined to just 0.10% in 2024 and is forecast to reach 0.09% by 2025. This represents a compound annual decline rate of -11.9% between 2009 and 2025 — a stark contrast to many other African economies that are struggling with rising debt burdens.

The decline has been consistent, with only brief fluctuations, such as a slight rise to 0.73% in 2012 before continuing its downward trajectory. Algeria’s ability to keep debt service low means it can direct more of its resources toward domestic investment, infrastructure, and social programmes rather than repayments. This sustained reduction is particularly notable, given the continent-wide challenge of escalating debt servicing costs.

Source:

World Bank - IDS

Period:

2009-2025
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Nigeria's debt service per GDP increased from 0.7% in 2015 to 10.2% in 2024, with 2025 forecasted to reach 15.1%
  • Nigeria's debt service per GDP rose from 0.9% in 2009 to a projected 15.1% in 2025.
  • Overall CAGR from 2009 to 2025 is 17.8%.
  • President Muhammadu Buhari’s tenure saw the fastest growth (29.1% CAGR).
  • Under President Goodluck Jonathan, growth was slower (6.5% CAGR).
  • President Bola Ahmed Tinubu’s term so far shows a 27.6% CAGR.
Angola's debt burden reached a new peak in 2024, with its debt service hitting 68.3% of GDP
  • Debt service in Angola hit 68.3% of GDP in 2024.
  • Even with a projected fall to 67.7% in 2025, the debt burden remains high.
  • Between 2009 and 2025, the debt service ratio grew at a CAGR of 11.2%.
  • The ratio stayed below 15% from 2009 to 2014 before surging to 41.9% in 2016.
  • Angola has faced multiple spikes above 50% since 2019, showing recurring debt strain.
  • The sharp drop to 31.2% in 2022 was short-lived, followed by a steep increase.
Guinea-Bissau had the highest agricultural contribution to its GDP among African countries in 2024, at 36.8%
  • Guinea-Bissau showed the highest agricultural contribution to its GDP at 36.8% in 2024.
  • Contributions range widely, with high reliance seen in Comoros (36.6%) and Ethiopia (34.9%), contrasting with lower percentages in DR Congo (17.1%) and Angola (16.4%).
  • Agriculture, forestry, and fishing contributed a notable 20.4% to Nigeria's GDP in 2024.
  • Countries with high agricultural GDP contributions are predominantly located in West and East Africa.
Burkina Faso’s GDP per capita has nearly quadrupled since 2000, marking a 297% increase over 25 years
  • Burkina Faso's GDP per capita rose from $248.9 in 2000 to an estimated $987.3 in 2024, marking a nearly 297% increase over 25 years.
  • The country saw its largest single-year jump between 2007 and 2008, rising $104.7 from $514.7 to $619.4.
  • Economic downturns were visible in 2009 (-2.9%), 2015 (-17.6%), and 2022 (-6.6%), showing vulnerability to shocks.
  • Since 2020, GDP per capita has grown 19.6%, with 2024 recording the highest value in the dataset.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved