The International Monetary Fund (IMF) forecasts Sub-Saharan Africa’s economic growth to remain stable at 4.1% in 2025, with a slight increase expected in 2026, driven by macroeconomic stabilization and reforms in key economies. Abebe Selassie, Director of the IMF’s African Department, announced this during a press briefing at the World Bank and IMF annual meetings in Washington, D.C., on October 16, 2025.
Selassie noted resilience in several economies but highlighted challenges for resource-intensive and conflict-affected countries, compounded by tight global borrowing conditions and declining aid. He warned of persistent macroeconomic vulnerabilities, including rising debt service costs crowding out development spending and risks from increased domestic financing.
To address these, Selassie recommended enhanced domestic revenue mobilization through improved tax administration, digitalization, and policy reforms, alongside strengthened debt management to improve transparency and reduce borrowing costs. On Nigeria’s inflation, he acknowledged progress from tight monetary policies but stressed the ongoing cost-of-living crisis. Selassie emphasized structural reforms to boost growth and ensure debt sustainability, noting public frustration over inadequate services despite high taxation. He also advocated targeted reforms to curb illicit financial flows, reinforcing broader governance efforts for sustainable development.
