ALGIERS — Algeria stands out in 2025 for its robust financial position, driven by a disciplined debt management policy and strong import coverage, amid a continent-wide deterioration in external balances, according to the African Export-Import Bank (Afreximbank) in its latest report on debt in Africa.

While many African countries struggle to manage their debt, Algeria’s low debt-to-export ratio—a key indicator of external debt sustainability—reflects prudent fiscal policy and strong export earnings, as detailed in the report, The State of the Debt Burden in Africa and the Caribbean, published on Afreximbank’s website.

The report indicates that in 2025, 14 African countries will exceed the critical debt-to-export ratio threshold of 180%, as defined by the Debt Sustainability Framework (DSF), above which the risk of financial distress becomes significant. Countries such as Eritrea, Sudan, and Sao Tome and Principe have ratios exceeding 800%, signaling particularly alarming situations. In contrast, Algeria maintains the lowest debt-to-export ratio on the continent, according to Afreximbank.

Algeria’s resilience is further underscored by its foreign exchange reserves. The report projects that Algeria will have nearly 17 months of import coverage in 2025, far surpassing the International Monetary Fund’s recommended threshold of three months, established in 2000.