IMF pledges support, cuts growth outlook as Africa faces trade war fallout

The International Monetary Fund (IMF) has pledged to support African nations hit by external shocks from global trade tensions, citing slower-than-expected growth across the continent.

IMF Africa Department Director, Abebe Selassie, told Bloomberg that while the direct impact of U.S. tariffs on Africa is limited, reduced commodity prices—especially for oil-dependent economies like Nigeria and Angola—pose a more serious threat.

“The accumulation of these shocks… has been really problematic for countries in their ability to roll over maturing obligations,” Selassie said, adding that the IMF is ready to help countries weather such disruptions.

Read more: African countries largely insulated from direct impact of US tariffs – Fitch Ratings

The IMF lowered its growth forecast for sub-Saharan Africa to 3.8 percent in 2025 and 4.2 percent in 2026, citing global financing pressures and lower trade revenues.

Selassie noted that energy-importing countries may benefit from falling oil prices, potentially curbing inflation and creating room for central banks to lower interest rates.

Despite the challenges, he highlighted signs of resilience, though uncertainty remains over how long elevated borrowing costs will persist for emerging economies.

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