The countries of sub-Saharan Africa are facing “the most difficult and uncertain economic situation for many years”, indicated on Friday the International Monetary Fund (IMF), emphasizing that international aid remains “essential” to meet current needs in terms of food security and the transition to green energies.
Growth in sub-Saharan Africa is expected to stand at 3.6% in 2022, a decline of more than one percentage point compared to 2021. This decline is mainly due to the international slowdown, the tightening of conditions and the volatility of commodity prices, notes the IMF in its latest projections on the regional economic outlook.
Rising food and energy prices are hurting the region’s most vulnerable populations, it is said, while public debt and inflation are at “decades-high levels.” “.
The international financial institution recalls that the recent upheavals come on top of the effects of a pandemic that is still relevant.
Economic activity in sub-Saharan Africa is expected to slow sharply in 2022 and remain relatively subdued in 2023. The outlook remains highly uncertain, according to the IMF.
The robust recovery interrupted
“At the end of last year, sub-Saharan Africa appeared to be on the path to a strong recovery from a long pandemic. Unfortunately, this improvement was abruptly interrupted by the upheavals in international markets, which put new pressures on the leaders of the region”, underlines Abebe Aemro SelassieDirector of the African Department of the IMF.
Echoing global trends, inflation rose faster and more sustainably than expected, driven by higher food and energy prices, which account for around 50% of the region’s consumption basket.
In this difficult context, the IMF recommends four priorities: protecting the most vulnerable, raising key rates prudently, continuing to consolidate public finances in order to preserve their fiscal sustainability, and creating the conditions conducive to quality growth, against a backdrop of acceleration of climate change.