African Countries' Financial Balance Sheets

Top 10 African countries with the highest government overall balance in Africa


November 6, 2023 4:35 PM

Top 10 African countries with the highest government overall balance in Africa

Top 10 African countries with the highest government overall balance in Africa

  • Business Insider Africa presents the top 10 African countries with the highest overall government balance in Africa.
  • This list is courtesy of the IMF’s Fiscal Monitor Report.
  • According to the IMF, the overall fiscal balance refers to net lending and borrowing by the general government.

Within the field of macroeconomics, the total government balance is a vital indicator of a country’s fiscal well-being and public financial management.

The term “overall government balance” typically refers to the difference between government revenue and government expenditure, taking into account all sources of revenue and all types of spending.

According to the IMF, the overall fiscal balance refers to net lending and borrowing by the general government. In some cases, however, the overall balance refers to total revenue and grants minus total expenditure and net lending.

The IMF’s Fiscal Monitor Report for October detailed the overall balance of every nation including advanced economies, emerging and developing economies, and low-income countries.


The fiscal gross and net debt data reported in the Fiscal Monitor are drawn from official data sources and IMF staff estimates.

The average overall balance for Sub-Saharan African countries is -4.0, compared to Asia’s -3.3, and Latin America’s -1.2, under the low-income developing countries bracket.

Below are the ten African countries with the highest overall government balance in Africa.

Rank Country Government Overall Balance 2023 (% of GDP)
1. Chad 8.3
2. Congo 4.1
3. Cameroon -0.8
4. Angola -1.9
5. DRC -2.0
6. Guinea -2.3
7. Ethiopia -2.7
8. Mozambique -2.8
9. Tanzania -3.3
10. Madagascar -3.9

Meanwhile, Uganda and Vitol Bahrain have chosen the Dar es Salaam port in the capital city of Tanzania as its entry point for its oil imports. This was done in an effort to foster the relationship between both East African countries. The move follows Vitol Bahrain’s procurement of a contract from Uganda National Oil Business (UNOC), that allows it to supply Uganda’s oil.

Port Of Dar-es-Salaam

The move also precedes Uganda’s decision to end its dependence on Kenya for its oil imports. A few weeks ago, a bill allowing Uganda National Oil Business (Unoc), a state-owned oil company, to purchase and deliver oil to the country’s internal market was approved by the Ugandan cabinet.

The purpose of the bill is to abolish the current process of importing oil via Kenyan distributors.

Regarding a hidden agreement Kenya made with the UEA and Saudi Arabia, Ugandan authorities and oil merchants voiced their dissatisfaction with Kenya. The Ugandan officials pointed out that the agreement would expose neighboring nations to high pump costs.

This information originated from details received from meeting minutes obtained by the Kenyan news website Business Daily.

This schism also has the potential to affect dollar exchange rates between the two countries at a time when the government sorely needs the greenback to pay for petroleum imports.

All petroleum products are imported and used for trade in Uganda. Dr. Nankabirwa claims that the port of Mombasa in Kenya gets around 90% of these goods, with the remaining 10% arriving via the port of Dar es Salaam in Tanzania.

Vitol Bahrain has now promised to fund a collaborative project at Namwambula Mpili with UNOC in order to expand the facility’s capacity and add 320 million liters of storage capacity.

Vitol Bahrain, an independent worldwide firm with a significant presence in the East African nation, is characterized by Dr. Nankabirwa as a strategic partner with a projected turnover of $505 billion in 2022.

#Dollar Shortage Worsens

Kenya may soon initiate barter trade with Egypt on tea exports as the North African country looks to preserve its dollars due to a biting shortage.

According to a report by Bloomberg, Egypt which is the second-largest importer of Kenya’s tea is toying with the idea of paying for the Kenyan commodity with another valuable commodity due to a dollar shortage.

Treasury CS Prof. Njuguna Ndung’u said the request came from Egypt stating that the tea exports were lying in Mombasa because Egypt had no dollars to pay.

''Right now we cannot get your tea. It’s lying in Mombasa because we have no dollars to pay,” the Egyptian ambassador to Kenya stated.

“We’ll get your tea and you also come and decide what you get from us,‘’ the Egyptian envoy further stated.

Reports from the Tea Board of Kenya indicate that the Kenyan tea exports to its largest importers Pakistan and Egypt fell by 23% and 13% respectively in the first eight months of 2023.

“We are still in a dollar global shortage and that is why countries like Egypt and Pakistan want to do barter trade,” CS Njuguna Ndung’u said.

Kenya itself has previously floated the idea of barter trade with Pakistan to circumvent the dollar shortage where the idea was to receive rice from Pakistan in exchange for Kenyan tea.

President William Ruto has tasked Agriculture CS Mithika Linturi among other stakeholders from the tea sector to work on an agreement with the South Asian country.

Even so, the plan has not yet materialized to date.

Meanwhile, the Kenyan Shilling has continued to depreciate against the dollar due to various factors including lower foreign exchange inflows and higher global interest rates.

The Kenyan shilling has depreciated by 18% in 2023 while the Egyptian pound is also struggling against the dollar after shedding 20% over the same period.

Does Egypt have oil ? We can exchange those stupid tea leaves for fuer, but the govt just like the way they did with Vladimirs fertilizer would still sell the exchanged petrol at 300kshs per litre as tz pump price goes for 192/= with a possibility of reducing


Report Predicts Economy to Take a Hit From Climate Change

A new report published has listed several economic sectors that are likely to take a hit from the ravaging effects of Climate Change.

The study titled From Climate to Resilience: Unpacking the Economic Impact of Climate Change in Kenya which is a performance audit on the conservation of water towers in Kenya by the Kenya Water Towers Agency predicts that if the right interventions are not made; key sectors of the Kenyan economy including agriculture and tourism will experience shocks.

“The livestock sub-sector is expected to suffer significant losses due to heat stress from the projected increase in temperature,” the report reads in parts.

The report further observes that the tourism sector in particular will be affected in a major way due to the impact on the Kenyan Coastal belt.


The coastal reefs at Chale Islands in Kwale County.

According to the report, Kenya will experience water scarcity if the current trajectory is maintained.

Water scarcity including the flow of water from Mt Kenya will have a major socioeconomic effect on agricultural irrigation, hydropower, and sanitation.

The report further points out that climate change poses a particularly large threat to the Kenyan economy due to the dependence on natural resources such as water. It also points out that Kenya’s exposure to climate-sensitive sectors is another challenge that the government needs to surmount.

Further, the report points out that Coast residents risk a disruption of their social and economic livelihoods due to increasing sea levels.

Farmers will incur losses due to the excess heat which will result in high prices of commodities like maize.

“Heavy rainfall and droughts lead to water acidification; changes in sea temperatures, and new circulation patterns that adversely affect fish habitats,” read part of the report.

Hydropower in the country will also be affected due to the projected increase in severe drought and higher evaporation rates.

Despite the challenges the country is experiencing, the report points out that Kenya leads the East African region in combating the effects of climate change.

The report makes several recommendations to help the country overcome the problem including; ensuring effective water management.

Other recommendations include; the use of agricultural insurance to manage the risks, more research on the effects, and mobilizing funds to deal with effects among other measures.

On Monday, November 13, Kenyans participated in a nationwide tree-planting exercise, geared at increasing the country’s forest cover which is in turn expected to help the country deal with the effects of climate change.

Top 10 African cities with the highest purchasing power


November 23, 2023 3:35 PM

Top 10 African cities with the highest purchasing power.

Top 10 African cities with the highest purchasing power.

In recent years, Africa has emerged as a beacon of economic prospects, challenging stereotypes and defying historical narratives.

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The continent’s growing economy is a testament to its resilience, innovation, and the collective determination of its nations to usher in a new era of prosperity. It is also a measure of its human and natural resources.

As Africa continues on its trajectory of economic growth and development, the concept of purchasing power takes center stage.

Businesses and individuals who take the time to understand the unique factors shaping consumer behavior in Africa can position themselves to not only tap into a vast market but also contribute to the continent’s sustainable economic development.

Read also: List of African cities with the highest quality of life

According to Numbeo, one of the world’s most profound data and research platforms, the index for local purchasing power is based on the average net salary of any given region. A domestic purchasing power of 40 means that residents with an average salary can afford, on average, 60% fewer goods and services compared to residents of New York City with an average salary.

The local purchasing power index is used alongside four other indexes to determine the overall cost of living for cities across the globe. Other metrics include the rent index, cost of living plus rent index, grocery index, and restaurant price index, a weighted average of this score gives the comprehensive cost of living index.

With that said below are the 10 African cities with the highest purchasing power.

List of the 10 African cities with the highest purchasing power

Rank City Country Local Purchasing Power Index
1. Pretoria South Africa 90.6
2. Johannesburg South Africa 83.8
3. Cape Town South Africa 82.2
4. Durban South Africa 68.0
5. Port Elizabeth South Africa 65.8
6. Windhoek Namibia 36.9
7. Gaborone Botswana 36.0
8. Casablanca Morocco 32.9
9. Sousse Tunisia 31.5
10. Agadir Morocco 29.4

By Chinedu Okafor