Zambia and Ethiopia are expected to record the largest declines in Government debt in Sub-Saharan Africa, according to Moody’s, which has upgraded its regional outlook to positive.
The credit rating Agency said economic reforms, strong commodity prices and improved access to financing had strengthened governments’ fiscal positions.
Moody’s projects regional economic growth of 4.3% in both 2026 and 2027. Government debt is forecast to fall from 62.4% of GDP in 2025 to 56.6% in 2027, while annual borrowing requirements are expected to decline from 12.3% to 11.2% over the same period.
However, it warned that debt repayments, limited government revenue, climate risks and security threats remain significant challenges. Kenya and Zambia are each expected to spend about 35% of government revenue on interest payments in 2027.
Ghana is among eight countries with positive outlooks, alongside South Africa, Namibia, Angola, Nigeria, Togo, the Republic of Congo and Zambia.