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A stable and prosperous Africa is essential not only for the continent’s future but also for global stability, the International Monetary Fund (IMF) has said in its latest Regional Economic Outlook for Sub-Saharan Africa.
However, the Fund warned that Africa’s path to prosperity remains uncertain and will depend heavily on sustained external support and greater access to international markets.
“A strong, stable, and prosperous Africa is good for the world. But this prosperity is far from guaranteed and will depend on continued external support,” the IMF stated.
The report emphasised that the most effective form of assistance is ensuring predictable market access for African goods and services. It also highlighted the need for continued financial support, especially for poorer and fragile states, to prevent them from falling further behind in global development.
The IMF cautioned that rising global trade tensions or tighter financial conditions in advanced economies could suppress investor confidence, slow economic activity, and increase borrowing costs for countries already facing fiscal strain.
Adding to these risks, the Fund projected a decline in official development assistance, further straining vulnerable economies across the region.
Read more: IMF pledges support, cuts growth outlook as Africa faces trade war fallout
“These developments are unfolding against a backdrop of persistent vulnerabilities, particularly in countries facing funding constraints and elevated borrowing costs,” the report noted.
While inflationary pressures are easing in some countries, others still face high inflation, calling for a mix of tight monetary and prudent fiscal policies.
The IMF urged African governments to build fiscal and external buffers, enhance economic policy credibility, and strengthen domestic resilience.
Key policy recommendations include boosting domestic revenue, improving spending efficiency, and reinforcing public financial management systems to lower borrowing costs.
The Fund also underscored the critical role of the private sector in long-term development, calling for structural reforms to improve governance, support regional trade, and foster a better business environment.
Investing in human capital and infrastructure remains essential for sustainable, private-sector-led growth, it said.
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