African Caucus and the IMF Reaffirm Commitment to Africa’s Resilience and Long-Term Development

IMF News, October 14, 2025

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Statement issued by Mr. Hervé Ndoba, Central African Republic’s Minister of Finance and Chair of the African Caucus, and Ms. Kristalina Georgieva, Managing Director of the IMF, at the conclusion of the African Caucus meeting at the 2025 IMF-World Bank Annual Meetings.
Purpose: take stock of current economic conditions and prospective developments for the African continent and chart a course ahead for the region.

Global growth projection: easing from 3.3 percent in 2024 to around 3.2 percent in 2025.
Africa growth projection: 4.2 percent for 2025, the same as in 2024.
Inflation: declining to an average of about 4 percent.
Major global headwinds identified:
- rising protectionism
- policy uncertainty
- geopolitical tensions
- tight global financing conditions
Climate impact: extreme weather events are already reducing output by 1–2 percentage points annually in the most vulnerable economies.
Vulnerabilities highlighted:
- In many low-income countries (LICs), interest payments absorb about 15 percent of revenues.
- External financing constrained by high borrowing costs and declining official aid.
- Fragile and conflict-affected states face particularly acute challenges.
- Per capita incomes in many countries have yet to recover to pre-pandemic levels.

Debt levels: stabilized at around 65 percent of GDP.
Inflation pressures and tight global financing conditions continue to weigh on fiscal positions and debt dynamics across many economies.
Policy aim: medium-term fiscal strategies will aim to balance consolidation with growth and create space for priority investments.

Core commitments:
- Safeguard macroeconomic and financial stability.
- Advance policies that enhance living standards through improved access to social services and job creation.
- Promote sustainable growth.
Domestic resource mobilization:
- Strengthen domestic resource mobilization as a central priority.
- Support governance reforms to improve public financial management, enhance fiscal transparency, and boost accountability.
- Digitalize tax systems and broaden the tax base to expand revenue.
- Raise spending efficiency to ensure public resources deliver maximum impact.
Structural reforms:
- Foster private-sector development.
- Deepen trade integration.
- Generate jobs.
Resilience building:
- Build resilience to climate shocks as an essential priority.

Poverty Reduction and Growth Trust (PRGT) reform:
- Recently approved reform has strengthened the Fund’s capacity to provide concessional lending.
- New commitments projected to average SDR 5.2 billion (US$7.1 billion) per year.
- Granting of zero-interest loans to the poorest IMF member countries.
Resilience and Sustainability Trust (RST):
- Providing longer-term affordable financing to help countries address structural challenges, strengthen pandemic preparedness, and build climate resilience.
- 26 programs approved to date—nearly half in Africa.
- Encouragement for continued efforts to ensure PRGT and RST are adequately resourced to meet the region’s growing needs.
IMF approach:
- Continue to adapt its lending toolkit and policy advice amid heightened global uncertainty.
- Work with African members to build fiscal space for scaled up infrastructure and human capital spending, strengthen institutional capacity and resilience, and accelerate progress toward the region’s legitimate development aspirations.

IMF press release: African Caucus and the IMF Reaffirm Commitment to Africa’s Resilience and Long-Term Development — October 14, 2025.