Sub-Saharan Africa faces turning point-IMF

After four challenging years and multiple shocks, sub-Saharan Africa’s economy appears to be on the mend, African Department Director of the International Monetary Fund (IMF), Abebe Selassie said at a briefing on the regional outlook at the ongoing Spring Meetings of the IMF and World Bank in the USA.

The department expects the region’s economic growth to rise to 3.8 percent in 2023, from 3.4 percent last year. After peaking at almost 10 percent in late 2022, inflation has nearly halved to around 6 percent in the early part of the year.

Yet far too many countries still face a funding squeeze, with government interest payments now accounting for about 12 percent of revenues, more than double the level a decade ago, Selassie said.

As well as stressing the important of international support, he highlighted three policy priorities for governments in the region: improve public finances, with an emphasis on domestic revenue mobilization; sustain the focus on reducing inflation wherever inflation remains well above target; and implement reforms that enhance skill development, spur innovation, improve the business environment, and promote trade integration.

“With the right policy choices today, I am confident that this moment could set the stage for this century to be the African century.”