Africa Must Prioritise Private Sector To Absorb Shocks, Says Imf

The IMF has said growth across Sub-Saharan Africa will "ease to 3.8 in 2025 and 4.2 in 2026 overshadowed by 'sudden realignments of global priorities" which have "cast a shadow on hard-won recovery"

Addressing the press during the IMF/World Bank Spring Meetings in Washington DC, Abebe Aemro Selassie, director of the Fund's African department, said even though "growth exceeded expectations in 2024" the outlook for 2025 and 2026 is driven by difficult external conditions, weak external demand from abroad, softer commodity prices and tighter financial markets.

The Africa-specific update follows a gloomy World Economic Outlook earlier this week which projected lower global growth.

With official development assistance expected to decline further, the IMF noted that more strain will be placed on vulnerable populations in Sub-Saharan Africa.

But the report noted there has been some moderation in inflationary pressure across the region even as some countries continue to grapple with elevated price pressures, necessitating the application of tighter monetary and fiscal policies.