World Bank Warns Ghana and African Economies Face Heavy Eurobond Repayments
African nations are confronting significant Eurobond repayment burdens and fiscal challenges, with US$43.6 billion maturing across 13 Sub-Saharan African countries by 2030. While many countries are opting for refinancing, this often increases future debt service costs, further pressuring public investment and social spending, as warned by the World Bank. Sustaining politically difficult reforms remains crucial amidst economic vulnerabilities and electoral cycles.
Sub-Saharan African countries face about US$43.6 billion in sovereign Eurobond principal maturities across 13 countries between 2024 and 2030, according to the World Bank, highlighting continued pressure on governments already dealing with elevated debt-service costs. South Africa faces the largest individual burden at US$11.8 billion, followed by Ghana and Nigeria at US$6.4 billion each, while Angola faces US$3.9 billion, Kenya US$3.2 billion, Côte d’Ivoire US$2.8 billion and Zambia US$2.2 billion.
Liability-management operations by some countries have reduced near-term concentrations, but the World Bank identifies substantial maturities still ahead, including approximately US$6.6 billion in 2027 and US$7.5 billion in 2029. For many countries, the response to maturing Eurobonds has been refinancing or restructuring rather than paying the principal directly from fiscal resources. Kenya, for example, refinanced its US$2 billion 2024 Eurobond through a US$1.5 billion issuance at a 10.4% yield, supplemented by budget resources, while Ghana completed a major Eurobond debt exchange in October 2024.
Zambia completed a liability-management operation that bought back and cancelled US$1.36 billion of outstanding notes due in 2053, while Ethiopia restructured its US$1 billion Eurobond after reaching an agreement in principle with private bondholders in June 2026. The World Bank says these approaches can extend repayment schedules, but refinancing at higher costs can also increase future debt-service burdens.
The pressure extends beyond Eurobonds, with Ghana, Kenya, Malawi and Zambia among countries facing substantial financing needs and rising debt-service costs. The World Bank warns that if revenue mobilisation remains weaker than expected, governments may have to undertake further fiscal adjustments, potentially putting pressure on public investment and social spending; it also cautions that prolonged inflation, exchange-rate depreciation and fiscal slippages could restrict monetary easing and weaken private investment and domestic demand.
For Ghana, which has undergone extensive debt restructuring and continues to pursue fiscal consolidation, the World Bank says maintaining fiscal and monetary discipline, strengthening domestic revenue mobilisation, and protecting priority social and infrastructure spending will be important to sustaining its economic recovery.