The Iran war is raising debt costs for African countries, sparking warnings that some economies could default as interest rates soar.

Several nations on the continent are only just recovering from a post-pandemic shock that sent debt burdens soaring, and inflationary pressures set off by the war in the Middle East now risk unfurling that progress.

The IMF this week forecast that economic growth will cool throughout the region in 2026, further compounding challenges: Citi’s chief Africa economist said Malawi, Mozambique, and Senegal could all default on their debts in the next two years.

“The space countries have to weather this crisis is severely limited,” one expert told Bloomberg.