African sovereigns are expected to raise $155 billion in commercial debt in 2026, a record high and an increase from the $140 billion estimated for 2025, according to a report by S&P Global Ratings. The primary driver of this borrowing is the need to refinance existing debt, with a significant portion of the new issuance dedicated to this purpose.
The report, published in March 2026, highlights that the continent's debt burden remains a critical challenge. While some countries have regained market access, high borrowing costs and tight global financial conditions continue to pressure government budgets. S&P notes that a large share of the upcoming debt maturities is denominated in foreign currency, exposing nations to exchange rate risks.
This sustained high level of borrowing underscores persistent fiscal pressures across the region. Analysts warn that without a corresponding boost in economic growth and revenue generation, debt sustainability risks will intensify for several African nations in the coming years.
