Minister of Finance for the Central African Republic Mr. Hervé Ndoba, and Chair of the African Caucus, and Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued a joint statement at the conclusion of the African Caucus meeting during the 2025 IMF-World Bank Annual Meetings.
The statement outlined key discussions between African Ministers and Governors of the Bretton Woods institutions, as they assessed current economic conditions and discussed the region’s path forward.
“It is clear that the global economic environment remains challenging,” the statement read. “Growth is projected to ease from 3.3 percent in 2024 to around 3.2 percent in 2025, with persistent headwinds including rising protectionism, policy uncertainty, and geopolitical tensions. Inflationary pressures and tight global financing conditions continue to weigh on fiscal positions and debt dynamics across many economies, with climate shocks compounding the region’s challenges.”
Despite these global challenges, Africa’s growth remains resilient, projected at 4.2 percent in 2025, the same as in 2024. This resilience is supported by easing inflation, stronger macroeconomic policies, and ongoing structural reforms. Debt levels have stabilized at around 65 percent of GDP, and inflation is gradually declining to an average of 4 percent.
However, the statement noted significant vulnerabilities. In many low-income countries (LICs), interest payments consume 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, with per capita incomes in many countries still below pre-pandemic levels.
The African Caucus reaffirmed its commitment to maintaining macroeconomic and financial stability, while advancing policies to improve living standards through enhanced access to social services, job creation, and 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. Efforts to digitalize tax systems and broaden the tax base will help expand revenue, while measures to increase spending efficiency will ensure that public resources have maximum impact.
Medium-term fiscal strategies will aim to balance consolidation with growth, creating space for priority investments. Structural reforms will focus on fostering private-sector development, deepening trade integration, and generating jobs. Additionally, building resilience to climate shocks is critical, as extreme weather events are already reducing output by 1–2 percentage points annually in the most vulnerable economies.
The statement also highlighted the recent reform of the Poverty Reduction and Growth Trust (PRGT), which strengthens the IMF’s capacity to provide concessional lending. New commitments are expected to average SDR 5.2 billion (US$7.1 billion) per year, with zero-interest loans granted to the poorest IMF member countries. The Resilience and Sustainability Trust (RST) has also been instrumental in providing longer-term, affordable financing to help countries address structural challenges, strengthen pandemic preparedness, and build climate resilience. To date, 26 RST programs have been approved, nearly half of which are in Africa. The African Caucus encouraged continued efforts to ensure these initiatives are adequately resourced to meet the region’s growing needs.
Amid heightened global uncertainty, the IMF is committed to adapting its lending toolkit and policy advice to better support its member countries in navigating evolving challenges. The IMF remains strongly committed to its African members, working with these nations to create fiscal space for scaling up infrastructure and human capital spending, strengthening institutional capacity, and accelerating progress toward Africa’s long-term development goals.