Debt collection remains one of the most persistent structural risks facing businesses operating across Africa.

While the continent offers high-growth markets and expanding consumer bases, creditors often encounter legal bottlenecks, weak enforcement mechanisms, and inconsistent payment cultures that complicate debt recovery.

According to Allianz Trade’s 2026 Collection Complexity Score and Rating, Africa, alongside the Middle East, ranks among the most challenging regions globally for creditors.

The findings point to a combination of long payment delays, inefficient court systems, weak bankruptcy frameworks, and poor payment discipline across both public and private sectors.

In many African markets, late payments are not an exception but a norm, particularly where public institutions and large enterprises dominate procurement chains.

Extended Days Sales Outstanding, slow judicial processes, and limited insolvency protections create an environment where creditors face prolonged uncertainty and low recovery rates.

These challenges place several African countries among the 52 most difficult jurisdictions worldwide for debt collection.

Below are some of the African markets where recovering outstanding debt remains especially complex, based on payment behaviour, legal efficiency, and bankruptcy procedures.

South Africa

South Africa is consistently ranked as the most difficult African country for debt collection, despite having one of the continent’s most developed legal and financial systems.

Standard payment terms frequently extend to 90 days, far exceeding global best practices. Even when contractual terms are clear, enforcement often becomes problematic due to congested courts, administrative delays, and lengthy liquidation procedures overseen by the Master of the High Court.

Insolvency processes are particularly discouraging for unsecured creditors. Liquidation proceedings are slow and costly, and recoveries are often minimal, reducing the incentive for creditors to pursue legal action.

As a result, many businesses resort to negotiated settlements or write-offs rather than formal recovery channels.

The gap between South Africa’s strong institutional framework on paper and its slow enforcement in practice remains a major risk for creditors.

Egypt

Egypt presents a mixed picture for debt recovery. In recent years, the country has introduced tighter banking regulations and more structured payment processes aimed at improving financial discipline.

Despite these reforms, late payments remain widespread across both public-sector entities and private businesses.

Creditors benefit from formal legal mechanisms such as the Order for Payment procedure for uncontested debts, which can expedite recovery in straightforward cases.

However, disputed claims must pass through the Economic Courts, where cases often require multiple hearings and can stretch over long periods.

Although enforcement tools exist, actual recovery largely depends on the creditor’s ability to trace and seize debtor assets.

In liquidation scenarios, unsecured creditors typically receive limited compensation, reflecting the structural imbalance in Egypt’s insolvency outcomes.

Morocco

Morocco continues to struggle with weak payment behaviour, with average payment delays ranging between 90 and 120 days. These delays are common across both private and public sectors, placing sustained pressure on cash flows for suppliers and service providers.

The legal framework governing debt recovery is complex and widely criticised for inefficiency and lack of transparency. Court procedures are often slow, and even when judgments are secured, enforcement can prove extremely difficult.

Morocco has multiple insolvency procedures, but they are widely viewed as cumbersome and ineffective in delivering meaningful recoveries.

As a result, legal action is frequently considered impractical, pushing creditors toward informal negotiations or extended repayment arrangements.

Senegal

Senegal’s debt collection challenges are closely tied to payment discipline and administrative inefficiencies, particularly in business-to-business transactions.

While official Days Sales Outstanding averages around 30 days, actual payment timelines often extend to 60 days or more. Delays are especially pronounced when dealing with public institutions and large corporations, where bureaucratic processes and approval bottlenecks are common.

Debt recovery infrastructure is less centralized than in many European markets, complicating enforcement and information access.

Senegal operates under civil law inherited from France, with bankruptcy and insolvency procedures governed by the OHADA treaty. While this framework promotes regional consistency, it does not eliminate procedural delays or enforcement challenges.

As a result, creditors often face prolonged recovery timelines and uncertain outcomes, particularly in complex or contested cases.