Eswatini 2nd lowest IMF debtor in Africa

As global inflation, persistent unemployment and sluggish development weigh heavily on many African economies, the importance of maintaining a low debt burden with the International Monetary Fund (IMF) has become increasingly evident.

In a testament to its prudent fiscal approach, Eswatini has emerged as the second-ranked African country with the lowest outstanding IMF debt, recorded at just under $20 million as of March 2025. This places the Kingdom behind only Lesotho and highlights its growing aspiration to position itself as a robust economic player on the continent.

High levels of IMF debt have historically posed challenges for many African nations. Such debt can erode fiscal flexibility, destabilise local currencies, and heighten vulnerability to external economic shocks. Conversely, countries with minimal IMF obligations tend to enjoy greater autonomy in policy-making and are better equipped to pursue sustainable development strategies.

IMF loans, while providing vital support during economic crises, are often accompanied by stringent conditions. These include austerity measures that can lead to reduced public spending on essential services, increased unemployment, and deepened poverty.

By keeping its debt to the IMF low, Eswatini retains the ability to steer its own economic direction without the pressure of externally imposed policy adjustments. This flexibility is crucial in addressing the unique socio-economic challenges faced by the nation and the broader Southern African region.

Moreover, low debt levels tend to inspire investor confidence. A limited reliance on international lending institutions signals sound economic governance and a commitment to long-term stability, both of which are key to attracting foreign direct investment.

According to the IMF’s data for March 2025, several African countries, including Eswatini and Equatorial Guinea, slightly reduced their debt loads compared to the previous month. The remainder of the top ten retained similar debt levels.

Top 10 African Countries with the Lowest IMF Debt (March 2025)

1. Lesotho – $11,660,000
2. Eswatini – $19,625,000
3. Comoros – $20,628,865
4. Sao Tome & Principe – $27,602,011
5. Djibouti – $31,800,000
6. Guinea Bissau – $52,291,400
7. Equatorial Guinea – $59,843,334
8. Cabo Verde – $72,116,000
9. Somalia – $87,000,000
10. Seychelles – $99,839,500

As economic headwinds persist, Eswatini’s approach to debt management offers a model for resilience, stability and independent policy-making across Africa.