A new assessment has revealed that 27 African countries are facing heightened financing and commercial risks as global liquidity pressures tighten, raising concerns about debt sustainability, currency volatility, and limited access to international capital markets
- 27 African countries face heightened financial and commercial risks due to tightening global liquidity pressures.
- These risks affect debt sustainability, currency volatility, and access to international capital markets.
- Sub-Saharan Africa emerges as the most vulnerable region among the high-risk countries identified.
- Specific challenges include rising debt levels, volatile exchange rates, lower investor confidence, and political instability.
Africa’s economies are once again under the microscope as 27 African countries have been ranked in the highest risk category for short-term financing and commercial vulnerability, according to the latest data from Allianz Trade.
The findings, released in Q3 2025, reveal how fragile liquidity conditions and disruptions in trade continue to expose emerging markets, especially those in Sub-Saharan Africa, to global economic shocks.
Financing and commercial risk measures how vulnerable countries are to short-term shocks, ranging from liquidity pressures between companies to disruptions in trade activity.
In practical terms, this means businesses in high-risk countries are more likely to face payment delays, credit constraints, or reduced access to international capital markets.
According to Allianz Trade, 90 countries are categorized as low risk, reflecting strong access to global financing and stable payment systems, while 57 countries fall into the high-risk zone, 27 of which are African.
This positions Africa as the region most exposed to potential liquidity pressures and short-term disruptions in trade and demand.
Sub-Saharan Africa bears the brunt of financial instability
The report highlights that high-risk countries are concentrated in Sub-Saharan Africa, parts of the Middle East, and conflict-affected regions such as Ukraine, Syria, and Sudan.
In Africa, economies such as Ghana, Egypt, Ethiopia, Sudan, and Zimbabwe are grappling with rising debt levels, volatile exchange rates, and limited access to international capital.
Many of these economies have also faced multiple headwinds since 2022, including tightening global financial conditions, currency depreciation, and lower investor confidence.
For example, Ghana’s recent debt restructuring and Nigeria’s fluctuating naira have highlighted how fragile liquidity and policy missteps can ripple through entire economies.
Meanwhile, countries such as Burkina Faso, Mali, and Niger are also dealing with political instability, which has further dampened investor confidence and disrupted trade routes.
These dynamics compound the continent’s financial exposure, making it more difficult for local businesses to access short-term credit or sustain stable cross-border trade.
Despite these challenges, analysts note that some African nations are taking proactive steps to strengthen their financial resilience. Efforts such as currency reforms, regional trade agreements, and improvements in payment infrastructure like those under the African Continental Free Trade Area (AfCFTA) could, over time, help mitigate some of these risks.
Still, the Allianz report reveals that without stronger fiscal buffers, diversification, and access to affordable financing, many African countries will continue to face heightened exposure to global economic volatility.
