IMF commends African economies for resilience amid global headwinds

By Seun Ibiyemi

The International Monetary Fund (IMF) has recognized Sub-Saharan Africa for demonstrating resilience in the face of challenging global economic conditions, which include slowing global growth, fluctuating commodity prices, and tight financing markets.

This commendation came from Abebe Selassie, Director of the IMF’s African Department, during a news conference on the Regional Economic Outlook for Sub-Saharan Africa at the 2025 IMF–World Bank Annual Meetings.

Selassie noted that overall growth across the region has remained steady, yet he warned that resource-dependent and conflict-affected nations continue to struggle, showing only modest improvements in per capita incomes.

He explained that global factors continue to test the continent’s economic stability. While weaker external demand and tighter financial conditions pose broad challenges, commodity prices are divergent: oil prices have declined, but the prices of metals and agriculture like copper, coffee, and gold have remained relatively high, providing an economic cushion for certain exporters.

He also cited a slight improvement in external financing conditions, pointing to the recent return of Kenya and Angola to international capital markets.

Despite signs of resilience, the IMF warned of emerging vulnerabilities across the continent. These include rising debt servicing costs that threaten crucial development spending, persistent inflation in several economies, and limited fiscal space that severely restricts policy flexibility for governments.

To strengthen this resilience and unlock the region's full growth potential, the IMF outlined two key policy priorities for African governments: domestic revenue mobilization and sound debt management.

Selassie urged nations to modernize their tax systems, embrace digitalization, and enhance enforcement while prioritizing fairness and transparency.

He stressed that these reforms must build public trust to ensure they are both effective and equitable.

On debt management, the IMF Director called for greater transparency, stronger public financial management, and the publication of comprehensive debt data, actions that can ultimately reduce borrowing costs and attract innovative financing.

Selassie confirmed that since 2020, the IMF has continued to provide significant financial support and technical assistance aimed at improving fiscal and economic governance across Sub-Saharan Africa.