Africa is showing resilience as reforms, disciplined policies, and easing inflation help economies weather global challenges, the IMF said.
High-Level Discussions
Furthermore, African finance ministers and central bank governors met at the IMF-World Bank Annual Meetings to discuss economic strategies.
Additionally, Central African Republic Finance Minister and Chair of the African Caucus, Hervé Ndoba, and IMF Managing Director Kristalina Georgieva released the statement.
“Despite global difficulties, Africa’s growth is projected at 4.2% in 2025, unchanged from 2024,” the IMF noted.
Meanwhile, inflation is expected to ease to about 4%, while debt levels have stabilised around 65% of GDP.
Progress And Reforms
However, global risks persist, including slower world growth, rising protectionism, geopolitical tensions, policy uncertainty, and tight international financing.
Moreover, climate shocks reduce output by 1–2 percentage points in some African countries each year.
The Fund also praised African governments for maintaining fiscal discipline, improving transparency, reforming taxes, and strengthening public financial management.
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Consequently, several countries adopt medium-term strategies that balance consolidation with growth, creating space for priority investments.
In addition, governments focus on job creation, broader social services, and sustainable, inclusive growth.
Furthermore, they improve domestic revenue through digitalised tax systems, anti-corruption measures, and governance reforms, boosting public spending impact.
Challenges And Support
Nevertheless, low-income and fragile states face pressure, as interest payments consume 15% of revenues.
Also, per capita incomes in fragile countries remain below pre-pandemic levels, raising concerns about poverty, inequality, and social cohesion.
Meanwhile, concessional financing through the PRGT and RST supports climate adaptation, structural transformation, and pandemic preparedness.
Finally, Georgieva reaffirmed the IMF’s commitment to helping African countries create fiscal space for long-term growth and development.
