International Monetary Fund (IMF)
The International Monetary Fund (IMF) has released its April 2024 Regional Economic Outlook for Sub-Saharan Africa, indicating a steady improvement in economic activity across the region.
According to the report, growth in Sub-Saharan Africa is expected to climb from 3.4% in 2023 to 3.8% in 2024, with a further increase to 4.0% projected for 2025, signaling continued recovery beyond the current year.
While the outlook is positive, African governments face persistent challenges such as financing shortages, high borrowing costs, and impending debt repayments, including significant Eurobond obligations of $5.9 billion in 2024 and $6.2 billion in 2025.
IMF officials highlighted the specific debt repayment challenges faced by countries like Kenya, Nigeria, and South Africa, with Kenya accessing markets to alleviate pressure and Nigeria and South Africa considering Eurobond issuance.
The IMF expects improvements in the G20 Common Framework to assist countries like Ghana in international debt negotiations, aiming for positive economic growth trajectories.
Luc Eyraud, IMF Division Chief of the African Department, underscored the debt repayment concentration in Kenya, Nigeria, and South Africa, with Kenya's recent market access offering some relief, while Nigeria and South Africa explore Eurobond options.
Catherine Pattillo, IMF Deputy Director of the African Department, emphasized ongoing efforts to enhance the common framework, including the global sovereign debt roundtable, facilitating dialogue among countries and creditors from both public and private sectors.