The World Bank has said the growth rate of Sub-Saharan Africa would slow by 3.6 per cent in 2023 as funding tied up to aid and private finance shrink.
In a press briefing, the IMF’s African Department Director, Abebe Aemro Selassie, disclosed this on Friday.
According to Selassie, if no measure is taken, funding shortage may force counties to reduce fiscal resources earmarked for education, health, infrastructure and other critical development affecting the Sub-Saharan region.
The IMF leader called on Countries in the region to gear up reforms needed to strengthen their economies’ resilience.
He said the acceleration of domestic revenue and policy formulation to insulate the region from the external environment should be considered.
He added that insulated economic policies would address rising inflation and interest rates and allow the exchange rate to adjust in the region.
“I wish I were bearing better news but unfortunately, we’re expecting growth to decelerate from 3.9% to 3.6% in 2023. And this largely reflects the big funding squeeze countries face now”, he stated.
