Sub-Saharan Africa's economic growth is expected to remain at 3.6 percent in 2024, according to the International Monetary Fund's (IMF) latest Regional Economic Outlook for the region. A modest increase to 4.2 percent is anticipated in 2025. The report highlights ongoing macroeconomic imbalances and tight financing conditions as significant challenges.
"Sub-Saharan African countries are navigating a complex economic landscape marked by both progress and persistent vulnerabilities," stated Abebe Aemro Selassie, Director of the IMF's African Department. He noted that while some countries are among the fastest-growing globally, resource-intensive nations, particularly oil exporters, face lower growth rates. Inflation remains high in nearly one-third of these countries, and public debt levels have stabilized but with increasing debt service burdens impacting development spending.
Selassie emphasized that current growth is insufficient to significantly reduce poverty or address major developmental challenges in the region. The report also addresses critical issues such as job creation needs, economic divergence between resource-rich and non-resource-rich countries, and the benefits of gender equality efforts.
Mr. Selassie outlined priorities for regional policymakers: “The policy mix should be consistent with the size of macroeconomic imbalances, while taking into account the political economy constraints that will affect the pace of reforms." He highlighted that countries with high imbalances might need substantial fiscal reforms due to tight financing constraints and stressed the importance of international financial support for these nations.
For countries with fewer imbalances, easing monetary policy towards neutrality while rebuilding fiscal buffers was suggested. "Policymakers need to focus on designing reforms that are socially acceptable," he added, stressing effective communication strategies and protection measures for vulnerable populations.
In conclusion, Mr. Selassie remarked on sub-Saharan Africa's potential for sustainable growth: "With continued efforts... However, the path ahead requires careful policy calibration and a strong commitment to implementing necessary reforms while managing social pressures."