Washington D.C||Africa’s economic growth remains resilient in the face of persistent global challenges, underpinned by easing inflation, stronger macroeconomic policies, and ongoing structural reforms, the International Monetary Fund (IMF) said on Tuesday following a high-level meeting with African finance ministers and central bank governors in Washington.
The statement, released jointly by Hervé Ndoba, Central African Republic’s Finance Minister and Chair of the African Caucus, and Kristalina Georgieva, IMF Managing Director followed the 2025 African Caucus meeting held on the sidelines of the IMF-World Bank Annual Meetings.
“Despite this difficult global context, Africa’s growth remains resilient and is projected at 4.2 percent for 2025, the same as in 2024,” the IMF said, adding that inflation is expected to ease to an average of about 4 percent, while debt levels have stabilised around 65 percent of GDP.
The ministers acknowledged that Africa continues to operate in a fragile global environment, with the IMF projecting global growth to decline slightly from 3.3 percent in 2024 to 3.2 percent in 2025. Rising protectionism, geopolitical tensions, policy uncertainty, and tight global financing conditions were cited as key risks. Climate shocks are also weighing heavily on the continent’s most vulnerable economies, with extreme weather already shaving off 1–2 percentage points of output in some countries each year.
Still, the Fund pointed to progress across a range of macroeconomic indicators. It noted that governments have maintained policy discipline in the face of external shocks, while reforms to boost fiscal transparency, expand tax bases, and improve public financial management are beginning to yield results.
Several countries are also advancing medium-term fiscal strategies that aim to balance consolidation with growth, creating space for priority investments.
“The African Caucus reaffirmed its commitment to safeguarding macroeconomic and financial stability while advancing policies that enhance living standards,” the joint statement said. It added that African governments are prioritising job creation, expanded access to social services, and the promotion of sustainable and inclusive growth.
Efforts to strengthen domestic resource mobilisation remain central to fiscal reform agendas, supported by digitalisation of tax systems, governance improvements, and anti-corruption measures. These are expected to boost efficiency, enhance revenue collection, and ensure that public spending delivers greater impact.
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The IMF noted that many low-income countries remain under considerable financial pressure. On average, interest payments in these economies now consume about 15 percent of government revenues, a situation exacerbated by high borrowing costs and declining official development assistance.
Fragile and conflict-affected states face particularly acute challenges. In several countries, per capita incomes have yet to return to pre-pandemic levels, raising concerns about poverty, inequality, and social cohesion. Structural reforms, including efforts to deepen trade integration and support private-sector development, are being pursued to build resilience and unlock long-term growth potential.
The Fund also emphasised recent steps to improve the availability of concessional financing. “The recently approved reform of the Poverty Reduction and Growth Trust (PRGT) has strengthened the Fund’s capacity to provide concessional lending,” the IMF said, projecting new commitments of about SDR 5.2 billion (US$7.1 billion) per year. These include zero-interest loans for the poorest countries.
Meanwhile, the Resilience and Sustainability Trust (RST), which offers longer-term affordable financing, has now approved 26 programs, nearly half of which are in Africa. These programs aim to support structural transformation, climate adaptation, and pandemic preparedness across eligible countries.
“We encourage continued efforts to ensure that the PRGT and RST are adequately resourced to meet the region’s growing needs,” the statement said.
Reaffirming the Fund’s support for the continent, Georgieva noted: “The Fund is strongly committed to its African members, working with these nations to build fiscal space for scaled-up infrastructure and human capital spending.”
The IMF assured that it would continue adapting its lending tools and policy advice to help African countries respond to evolving economic challenges while advancing their long-term development goals.