Washington: The Director of the African Department at the International Monetary Fund (IMF), Abebe Selassie, highlighted the resilience of Sub-Saharan Africa in the face of global economic challenges during a news conference on the regional economic outlook. This event was part of the 2025 Annual Meetings of the IMF and World Bank.

According to News Agency of Nigeria, Selassie remarked on the continent’s ability to withstand a challenging global environment characterized by slowing global growth, fluctuating commodity prices, and tight financing conditions. Despite these adversities, Sub-Saharan Africa has managed to maintain steady growth. However, resource-dependent and conflict-affected countries continue to face significant hurdles, with only modest improvements in per capita incomes.

Selassie pointed out that global factors such as weaker external demand, divergent commodity prices, and tightening financial markets continue to test the region’s economic resilience. He noted that while oil prices have declined, the relatively high prices of copper, coffee, and gold have provided some cushion for exporters in the region.

The IMF observed slight improvements in external financing conditions, with countries like Kenya and Angola recently re-entering international capital markets. However, the Fund also warns of emerging vulnerabilities, including rising debt servicing costs that threaten development spending, persistent inflation in several economies, and limited fiscal space that restricts policy flexibility.

To address these challenges and strengthen resilience, Selassie outlined two key policy priorities for African governments: domestic revenue mobilisation and sound debt management. He emphasized the importance of modernizing tax systems, embracing digitalization, and enhancing enforcement. Additionally, he stressed that these reforms must build public trust and ensure fairness to be effective and equitable.

Selassie urged countries to improve transparency, strengthen public financial management, and publish comprehensive public debt data to reduce borrowing costs and attract innovative financing. Since 2020, the IMF has provided financial support to Sub-Saharan African countries, alongside robust technical assistance aimed at improving fiscal and economic governance.