The general government balance is one indicator that rarely receives much attention but is extremely important in the dynamic realm of African economies.
- Business Insider Africa presents the top 10 African countries with the largest increase in extra cash from 2024 to 2025.
- This list is courtesy of the Africa Pulse Report by the World Bank.
- Ghana ranks number 1 on the list.
The gap between a government’s income (mostly from taxes, grants, and other sources) and expenses is measured by this fiscal indicator.
Stronger financial management and more economic stability are indicated when a government continuously reports an improvement in its balance from year to year, whether through a decrease in deficits or an increase in surpluses.
SEE ALSO: Top 10 African countries with the most spare money in 2025
Steady growth in the general government balance is more than simply a figure for African nations hoping to draw in investment, combat poverty, and unleash sustainable development.
Better governance, better budgetary restraint, and a government’s capacity to fulfill its obligations are all reflected in it.
The net borrowing or net lending of a government is referred to as the general government balance.
A budget deficit occurs when the balance is negative, indicating that the government is spending more than it is taking in.
A budget surplus is shown by a positive balance, which indicates that the government is operating within or below its means.
SEE ALSO: Top 10 African countries with the highest income levels
Improving this balance year after year, whether through rising income, falling expenditures, or both, has a big impact on the macroeconomic situation.
Credit rating agencies and investors closely monitor a nation’s financial situation.
A government that gradually improves its budget balance is viewed as economically prudent, which increases the nation’s appeal to foreign lenders and foreign direct investment.
It is crucial to remember that how a government reaches a better balance is critical.
If the balance improves due to significant cuts in critical services or aggressive taxation that stifles growth, the advantages may be eroded.
With that said, here are the African countries with better government balances in 2025, compared to 2024, as seen in the Africa Pulse Report.
Top 10 African countries with the largest increase in government balance from 2024 to 2025
| Rank | Country | Government balance 2025 in % of GDP | Government balance 2024 in % of GDP | Differential |
|---|---|---|---|---|
| 1. | Ghana | -2.7% | -7.7% | 5.0% |
| 2. | Senegal | -7.6% | -11.5% | 3.9% |
| 3. | São Tomé and Príncipe | 3.9% | 0.7% | 3.2% |
| 4. | Togo | -3.0% | -6.1% | 3.1% |
| 5. | Central African Republic | -2.3% | -4.9% | 2.6% |
| 6. | Guinea-Bissau | -4.8% | -7.3% | 2.5% |
| 7. | The Gambia | -1.4% | -3.5% | 2.1.% |
| 8. | Mozambique | -3.6% | -5.5% | 1.9% |
| 9. | Burundi | -5.6% | -6.9% | 1.3% |
| 10. | Côte d’Ivoire | -3.0% | -4.0% | 1.0% |
