Africa’s Most Challenging Debt Collection Markets: Where Creditors Face the Toughest Barriers
Debt recovery remains a major hurdle across several African economies, placing the continent firmly on the global list of the 52 most difficult regions for collecting outstanding debt. Recent findings from Allianz Trade’s Collection Complexity Score and Rating highlight Africa, alongside the Middle East—as one of the most challenging environments worldwide for creditors seeking payment recovery.
According to the report, both regions consistently rank as the most complex contexts for debt collection, reflecting deep-seated legal, institutional, and payment-behaviour challenges. In Africa, these difficulties are compounded by poor payment discipline, prolonged Days Sales Outstanding (DSO), overburdened court systems, and weak or ineffective bankruptcy frameworks, all of which significantly undermine creditors’ chances of timely recovery.
Late payments have become a widespread issue across many African markets, with public-sector institutions and large corporate entities frequently among the worst offenders. The normalization of delayed settlements has created an environment where creditors face extended uncertainty, increased costs, and reduced recovery prospects.
Against this backdrop, attention is turning to countries where debt collection is particularly difficult. Based on payment behaviour, legal efficiency, and the complexity of insolvency and bankruptcy procedures, the following African countries stand out as the most challenging for debt recovery.
South Africa
South Africa is consistently ranked as Africa’s most complex debt collection market. Payment terms commonly extend to 90 days, far exceeding global norms and placing significant strain on cash flows.
The recovery process is further hindered by court backlogs, administrative delays, and protracted liquidation procedures overseen by the Master of the High Court. Insolvency proceedings are often lengthy and uncertain, and in many cases, unsecured creditors recover little to nothing, making legal action an unattractive and costly option.
Egypt
Egypt has made notable progress in strengthening payment discipline through tighter legislation and enhanced banking oversight. Despite these improvements, late payments remain widespread, particularly within the public sector and commercial transactions.
Creditors can rely on structured legal tools such as the Order for Payment procedure for uncontested claims, while disputed cases are handled by the Economic Courts. However, contested matters often require multiple hearings, prolonging resolution timelines. Although enforcement mechanisms exist, recovery largely depends on the traceability of debtor assets, and unsecured creditors typically receive minimal compensation during liquidation.
Morocco
Morocco continues to struggle with poor payment behaviour, with average delays ranging between 90 and 120 days. The country’s legal framework is widely viewed as complex, inefficient, and poorly coordinated, creating significant uncertainty for creditors.
While legal remedies are available, enforcing court judgments is often extremely difficult, making litigation an impractical option in many cases. Although Morocco offers several insolvency procedures, these processes are generally slow, complicated, and largely ineffective in securing meaningful debt recovery.
Read also 10 African Countries with the Weakest Currencies at the Start of 2026
Senegal
Senegal’s payment culture is also regarded as weak, particularly in business-to-business transactions. Although official DSO averages around 30 days, payments are more commonly settled within 60 days or longer, especially when public institutions or large corporations are involved.
Debt recovery is further complicated by limited centralisation of financial and enforcement data, reducing transparency and traceability. Senegal operates under a civil law system inherited from France, with bankruptcy and insolvency governed by the OHADA treaty. While this provides regional legal consistency, it has not eliminated procedural delays or enforcement challenges.
