Long-Term Development: IMF, African Caucus, Reaffirm Commitment

• Projects Africa’s 2025 economic growth @ 4.2% •Commits to tax digitalisation, spending efficiency

BY BONNY AMADI

The African Caucus and The International Monetary Fund (IMF) have reaffirmed commitment to Africa’s resilience long –term development.

At the conclusion of the African Caucus meeting segment on the sideline of the 2025 IMF-World Bank Annual Meetings, the duo of African Caucus, led by Mr. Hervé Ndoba, Central African Republic’s Minister of Finance and Chair of the African Caucus, and Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued a statement of commitment to this effect.

In the statement, the global leaders said, “Today, African Ministers and Governors of the Bretton Woods institutions convened with IMF management to take stock of current economic conditions and prospective developments for the African continent and chart a course ahead for the region. They noted that the global economic environment remains challenging, with growth projected to ease from 3.3 percent in 2024 to around 3.2 percent in 2025 amid persistent headwinds from rising protectionism, policy uncertainty, and geopolitical tensions. Inflation pressures and tight global financing conditions continue to weigh on fiscal positions and debt dynamics across many economies, with climate shocks adding further complexity to the challenges the African continent faces.

The leaders in the jointly signed statement noted that “Despite this difficult global context, Africa’s growth remains resilient and is projected at 4.2 percent for 2025, the same as in 2024, supported by easing inflation, stronger macroeconomic policies, and ongoing reforms. Debt levels have stabilized at around 65 percent of GDP, and inflation is declining to an average of about 4 percent.

However, vulnerabilities remain significant. In many low-income countries (LICs), interest payments absorb about 15 percent of revenues, while external financing is constrained by high borrowing costs and declining official aid. Fragile and conflict-affected states face particularly acute challenges, and per capita incomes in many countries have yet to recover to pre-pandemic levels.

The African Caucus however reaffirmed its commitment to safeguarding macroeconomic and financial stability while advancing policies that enhance living standards through improved access to social services, job creation, and the promotion of sustainable growth. Strengthening domestic resource mobilization remains a central priority, supported by governance reforms to improve public financial management, enhance fiscal transparency, and boost accountability.