Ghana was ranked 29^th in Sub-Saharan Africa out of 39 with a debt policy and management score 2.5%

According to the World Bank’s Country Policy and Institutional Assessment (CPIA), Benin was ranked 1^st with a score of 4.5%.

It was followed by Côte d’Ivoire and Burkina Faso in the 2^nd and 3^rd positions, respectively, with scores of 4.5 and 4.0.

From 4^th to 10^th positions were Madagascar (4.0), Mali (4.0), Nigeria (4.0), Rwanda (4.0), Tanzania (4.0), Uganda (4.0) and Cameroon (3.5).

The bottom five nations in SSA were Malawi (2.0), Sao Tome and Principe (2.0), Eritrea (1.5), South Sudan (1.5) and Sudan (1.5).

According to the report, large maturity payments have increased the risk of having to roll over debt in tight credit conditions and can test the liquidity levels of public markets, thus making debt servicing especially expensive.

It explained that the most extreme case of this in 2024 was Kenya, whose successful issuance of a Eurobond in February allowed for the early buyback of a US$2.0 billion Eurobond maturing in June, thereby calming the forex market.

The report stated that active management of debt horizons and large maturity payments can be especially beneficial at reducing rollover costs.

“Liability market operations to reduce liquidity pressures and improve debt profiles were conducted in Benin and Côte d’Ivoire. For instance, Côte d’Ivoire concluded a Eurobond issuance and a buyback in early 2024 and implemented the first debt-for-development swap guaranteed by the World Bank. This allowed the country to buy back expensive debt and replace it with cheaper, partially guaranteed debt”, the report explained.

The World Bank said across the region, debt strategies have prioritised concessional lending as a way to reduce debt service costs. Since 2020, multilateral institutions have become the most important source of development financing, especially for low-income countries.

For IDA countries in Sub-Saharan Africa, multilateral net debt inflows increased from US$6 billion in 2012 to US$20 billion in 2023. Multilaterals have consistently provided the largest positive net debt flows in recent years, demonstrating a sustained commitment to development financing in IDA countries.