The International Monetary Fund (IMF) has approved more than US$15 billion in financial assistance to African countries to help them navigate rising debt pressures and global economic uncertainty, according to the Fund’s 2025 Annual Report.
Sub-Saharan Africa received approximately US$9.1 billion across 13 low-income countries, while North African nations were allocated roughly US$6.1 billion, mainly for Morocco and Egypt. The disbursements are tied to policy conditionalities aimed at fiscal reforms, debt management, and social protection measures.
“The support is designed to help countries weather external shocks, maintain macroeconomic stability, and implement reforms that foster sustainable growth,” the IMF said.
In Sub-Saharan Africa, the largest allocations were approved for Ethiopia (US$3.46 billion), the Democratic Republic of the Congo (US$2.89 billion under Extended Credit Facility and Rapid Support Facility programs), and Tanzania (US$0.81 billion). Smaller disbursements were made to Madagascar, Sierra Leone, Liberia, Kenya, Mali, Guinea, São Tomé and Príncipe, and the Central African Republic. In North Africa, Morocco received $4.68 billion and Egypt US$1.36 billion.
Most IMF programs include strict conditionalities, linking lending to fiscal consolidation, public financial management, debt sustainability, and targeted social spending. This approach aims to ensure that funding is directed toward long-term development priorities while protecting essential services in health, education, and infrastructure.
The financing comes at a critical time for African economies. Global growth remains sluggish, and many low-income countries on the continent face some of the highest borrowing costs in over a decade. Rising debt-service obligations have constrained fiscal space, making IMF support particularly important for maintaining macroeconomic stability.
The Fund’s report highlights that conditional lending is structured to balance short-term stability with growth-enhancing reforms. By linking disbursements to policy performance, the IMF seeks to ensure that funds are used for sustainable investment and social protection measures.
Africa’s macroeconomic outlook for 2026 is cautiously optimistic. The World Bank projects that Sub-Saharan Africa’s economy will expand from about 3.5 percent in 2025 to around 4.3 percent in 2026–27, supported by private consumption, stabilizing currencies, and easing inflationary pressures. The IMF’s Regional Economic Outlook similarly forecasts a growth rate of near 4.1 percent for Sub-Saharan Africa in 2025, with modest increases expected in 2026 as reforms take effect.
However, debt vulnerabilities remain high. The IMF estimates that more than half of low-income African countries are at risk of, or already in, debt distress due to tighter global financing conditions and rising interest rates. Inflationary pressures, particularly on food and currency-sensitive economies such as Nigeria, continue to pose challenges.
Regional disparities persist, with East African economies such as Ethiopia and Kenya expected to outperform the continental average, while Southern African and fragile states lag behind. The IMF’s lending strategy is therefore tailored to address these variations, combining immediate fiscal support with long-term governance and structural reforms.
“IMF financing remains a central pillar of Africa’s macroeconomic strategy for 2025–26, supporting both stability and fiscal sustainability,” the report concluded.
The approvals reflect the IMF’s increasing focus on Africa as a priority region, with the Fund emphasizing the continent’s vulnerabilities to global shocks while reinforcing mechanisms for growth and resilience.
