IMF Share’s Insight on Africa’s Economic Outlook for Year Ahead 2024

In a recent press briefing held by the International Monetary Fund (IMF), Abebe Aemro Selassie, Director of the African Department, offered a comprehensive overview of the economic outlook for Africa, underscoring the region’s resilience amidst global challenges and outlining the path forward.

Selassie commenced by acknowledging the persistent growth momentum in Africa, with the region’s economy projected to grow from 3.3% in the previous year to approximately 3.8% in 2024. This positive trajectory is further bolstered by a notable decrease in inflation rates and an upswing in both domestic and foreign investment, signalling a robust foundation for future economic activity.

Abebe Aemro Selassie is the Director of the African Department, where he oversees the IMF’s operations and engagement with 45 countries across sub-Saharan Africa. Under his leadership the IMF has disbursed some $51 billion to support the post pandemic recovery and foster greener more inclusive growth. Working tirelessly alongside the region’s leaders Mr. Selassie strives to strengthen the region’s financial architecture and support Africa reaching its true potential. Before taking up his current position in 2016, Mr. Selassie gained extensive experience in a wide-ranging career at the IMF. He held various senior positions, including Deputy Director in the African Department, Mission Chief for Portugal during the Euro Area Crisis and South Africa. He has served as the IMF’s Senior Resident Representative in Uganda and earlier in his career, he worked on the Fund’s lending programs with Turkey, Thailand, Romania and Estonia. While in the Strategy, Policy and Review Department he was deeply involved in low-income country and emerging-market programs and policy design issues. Before joining the IMF in 1994, he worked for the Government of Ethiopia as Principal Economist in the Office of the President and at the Economist Intelligence Unit in London. Source: IMF

Highlighting the concerted efforts by governments across the region to stabilise public debt, Selassie noted a significant milestone with public debt levels stabilising around the 60% mark, halting a decade-long trend of escalation. This development is particularly noteworthy, reflecting the diligent policy measures undertaken by these nations to ensure economic stability.

However, the journey ahead is not devoid of challenges. Africa continues to navigate a complex external environment characterised by tight global financing conditions and pressures on foreign exchange rates. The resilience of the region, according to Selassie, lies in its ability to adapt and innovate in response to these external pressures, emphasising the critical role of continued reforms to unlock the region’s immense potential.

The IMF’s engagement with Africa has been robust, with approximately $3 billion disbursed in the last three months to support reforms and an overall commitment of around $19 billion. Selassie highlighted the use of newer facilities like the Resilience and Sustainability Trust, which aims to bolster the region’s defences against climate change and other emerging challenges.

The briefing also touched on critical issues facing specific countries, including the political and economic ramifications of postponed elections in Senegal, the potential exit of Niger, Burkina Faso, and Mali from ECOWAS, and innovative debt relief efforts exemplified by the debt-for-climate swap between Cabo Verde and Portugal.

Selassie emphasised the heterogeneity of experiences across the region, acknowledging the diverse challenges and successes in implementing reforms. Despite the external shocks and financial strains, the resilience of Africa shines through, with countries making significant strides in maintaining economic stability and laying the groundwork for sustained growth.

In conclusion, the IMF’s briefing underscored a message of hope and resilience for Africa. With continued support and strategic reforms, the region is well-positioned to navigate the complexities of the global economy and harness its potential for a prosperous future.

As the continent strides forward, the spirit of Pan-Africanism and a collective resolve to overcome challenges will undoubtedly play a pivotal role in shaping the narrative of progress and unity for Africa.

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Source: IMF