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By Newz.Africa Business Desk |Africa | 05 February 2026 |Africa’s hard-currency debt
Africa’s hard-currency debt is set to exceed $90 billion in 2026. This will increase pressure on governments’ foreign exchange buffers. It will also strain their refinancing plans. S&P Global Ratings projects the rise in external repayments and warns of heightened rollover risk. This matters because large scheduled repayments can squeeze budgets and limit policy room for growth.
Hard-currency debt projected to spike in 2026
S&P Global Ratings says government external debt repayments across African sovereigns will top $90 billion in 2026. The agency notes repayments are now more than three times larger than in 2012. This is a sign of rising external financing demands.
The ratings house adds that easing global financial conditions have allowed some sovereigns to return to markets. But high-cost deals and private placements have increased the cost of refinancing for several issuers.
Which countries face the largest hard-currency debt burden?
S&P identifies Egypt as the largest single contributor, with roughly $27 billion of principal repayments due in 2026. Angola, South Africa and Nigeria also feature among the top exposures. These country-level numbers drive much of the continental total.
Several governments are using liability management tools. S&P identifies buybacks as common responses in Côte d’Ivoire, Benin, Uganda, Kenya, Mozambique, and the Republic of Congo. They also mention maturity extensions and exchanges. These measures aim to smooth refinancing needs.
Economic context and credit outlook for African sovereigns
S&P expects average real GDP growth across rated African sovereigns of about 4.5% in 2026. It says average sovereign ratings have improved since 2020. This reflects reform momentum. However, it adds that this improvement signals stabilisation rather than large structural repair. Government debt is forecast to remain elevated at around 61% of GDP on average.
Higher repayments increase external vulnerability and could raise borrowing costs where markets perceive greater rollover risk. Reuters and Business Insider Africa carried details of S&P’s figures and country splits.
Original reporting
What we confirmed:
- S&P Global Ratings projects government external (hard-currency) debt repayments for African sovereigns will exceed $90 billion in 2026.
- Egypt accounts for about $27 billion of principal repayments due in 2026, with Angola, South Africa and Nigeria also major contributors.
- S&P notes average real GDP growth of about 4.5% in 2026 and that average sovereign ratings have improved since late 2020, while debt levels remain elevated.
Primary artefact:
S&P Global Ratings African sovereign ratings outlook 2026. It includes the S&P research page and outlook note summarising repayment schedules and credit outlook. Access requires S&P site registration.
Sources:
- S&P Global Ratings: African sovereign ratings outlook 2026 (S&P research and outlook pages).
- Reuters coverage summarising the S&P outlook (3 February 2026).
- Business Insider Africa report (4 February 2026).
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