Following the 2025 Annual Meetings of the World Bank and IMF, Africa is showing encouraging economic momentum. Despite a tense international environment, the continent is maintaining robust growth, while debt and inflation levels are showing signs of stabilization. However, structural vulnerabilities persist, calling for deep reforms and increased support from international partners, reports Le Soleil.

Improving Macroeconomic Stability

Public debt has stabilised at around 65% of GDP, according to the joint statement by Kristalina Georgieva (IMF) and Hervé Ndoba (Group of African Governors).

Average inflation is falling, now close to 4%.

Economic growth forecast at 4.2% in 2024 and 2025, driven by resolute macroeconomic policies and ongoing reforms.

Persistent Vulnerabilities: Three Major Obstacles

1. Interest burden: Up to 15% of government revenue absorbed by debt service in low-income countries.

2. Constrained external financing: High borrowing costs and declining public aid.

3. Climate risks: Annual drop of 1 to 2 points of growth in the most exposed countries.

Priority Reforms: Mobilizing Domestic Resources

- Tax reforms: Broadening the tax base and dematerializing systems.

- Budgetary governance: Transparency, accountability and efficiency of spending.

- Targeted investments: Infrastructure and human capital as a priority.

- Structural reforms: Private sector development and trade integration.

IMF Increases Support: $7.1 Billion a Year

- PRGF Fund: Zero-interest loans for the poorest countries, with annual commitments estimated at 5.2 billion SDRs (or 7.1 billion USD).

- FFRD Fund: Long-term financing for climate and health resilience. 26 programs approved, nearly half of which are in Africa.

- Strategic engagement: The IMF adapts its instruments to meet growing needs and strengthen institutional capacities.