10 African Countries With The Lowest Import Cover

Import cover refers to a country’s foreign exchange reserves, which are defined in terms of how many months it can pay for imports without requiring outside aid. This is why import cover is a crucial indicator of an economy’s health. This is especially true given Africa’s vulnerability to external shocks and global market developments.

A high level of import coverage serves as a cushion against economic volatility. It communicates to investors, creditors, and foreign trade partners that the government is capable of meeting its international obligations, particularly during times of economic distress.

This confidence can attract foreign direct investment (FDI) and improve the country’s credit rating, cutting borrowing costs and enabling more cheap funding for development projects.

A robust import cover is crucial for African economies, which are particularly sensitive to commodity price fluctuations, political instability, and external debt pressures.

However, not every African country can boast a significant import cover.

Afreximbank’s African Trade Report 2024 highlights that capital inflows from greenfield projects, global and regional development financing organizations, and bilateral partners, along with increased tourist arrivals and remittances, have contributed to the continent’s reserve position.

These achievements helped to boost Africa’s average import cover to 5 months in 2023, up from 4.7 months in 2022 and beyond the IMF criteria of 3 months.

While many countries on the continent proudly claim import coverage of more than three months, others fall well short.

With that considered, here are the ten African countries with the fewest months of import coverage.