The International Monetary Fund (IMF) has called on commodity-dependent Sub-Saharan African nations to reform their economies to address sluggish regional growth. The IMF’s Africa Director, Abebe Aemro Selassie, emphasized that reforms are essential for these countries to improve economic resilience.
The region’s growth rate is projected at 3.6% for this year, consistent with last year and slightly down from the previous forecast of 3.8%. The IMF’s World Economic Outlook report highlights that countries reliant on commodities are lagging behind more diversified economies, with oil exporters facing the greatest challenges.
Countries such as South Sudan, Nigeria, and Angola are cited as struggling to keep pace. Nigeria, for example, is forecasted to grow by only 2.9%, significantly below the regional average. High inflation and cost-of-living pressures are adding to Nigeria’s economic challenges, Selassie noted, calling for robust government action to address these issues.
In contrast, diversified economies like Senegal and Tanzania are expected to grow above the regional average. South Africa’s growth, meanwhile, is projected at a mere 1.1% this year, hampered by persistent power outages. Conflicts also contribute to economic stagnation, with South Sudan’s oil exports obstructed by unrest in neighboring Sudan.
The IMF’s report suggests Sub-Saharan Africa’s growth could improve slightly to 4.2% next year. However, it warns that faster growth is essential to combat poverty and inequality. Debt burdens, financing limitations, and global shifts toward green energy also weigh on the region’s outlook.
Selassie called for increased international financing support for low-income countries facing liquidity challenges, emphasizing that development assistance is critical for economic stability and growth in the region.
