The International Monetary Fund published a joint statement by African Caucus Chairman Seedy Keita and Managing Director Kristalina Georgieva after the African Consultative Group met with IMF management, highlighting a weaker near-term outlook for Africa amid risks from the war in the Middle East. Under an assumption of relatively swift normalization, global growth is projected at 3.1% in 2026 and 3.2% in 2027, while Africa’s real GDP growth is projected to decline to 4.2% in 2026 from 4.5% in 2025, with Sub-Saharan Africa at 4.3% and North Africa at 4.1%. Policymakers were urged to keep inflation expectations anchored and protect vulnerable groups through targeted, time-bound support, with fiscal policy described as needing to remain credible yet flexible. Oil exporters were encouraged to save temporary windfalls and rebuild buffers, while oil importers should safeguard priority social and development spending as they mobilize domestic revenues, improve spending efficiency, and strengthen public financial management. The statement also pointed to reforms to support growth and diversification, deepen regional integration and domestic financial markets, and invest in power and digital foundations to harness AI safely and productively; it further backed the ongoing review of the Low-Income Country Debt Sustainability Framework, including a re-specified debt-carrying capacity measure, clearer debt coverage, and stronger treatment of state-owned enterprise-related obligations where relevant, and called for the Comprehensive Surveillance Review to strengthen analysis of imbalances and spillovers, bolster shock management, and streamline surveillance.
International Monetary Fund 2026-04-14
International Monetary Fund and African Consultative Group project Africa growth slowing to 4.2% in 2026 and endorse refinements to the Low-Income Country Debt Sustainability Framework
The International Monetary Fund and the African Caucus issued a joint statement highlighting a weaker near-term outlook for Africa, with real GDP growth projected at 4.2% in 2026, versus global growth of 3.1% in 2026 and 3.2% in 2027, amid risks from the war in the Middle East. The statement urges credible but flexible fiscal policy, targeted support for vulnerable groups, prudent management of oil windfalls, and reforms to foster diversification, financial market development, and digital and power infrastructure. It also backs reviewing the Low-Income Country Debt Sustainability Framework and calls for the Comprehensive Surveillance Review to strengthen analysis of imbalances, spillovers, and shock management.