## Press Briefing Transcript: African Department, Annual Meetings 2025

_IMF News, October 16, 2025_

## Source details

**Canonical URL:** [Press Briefing Transcript: African Department, Annual Meetings 2025](https://www.imf.org/en/news/articles/2025/10/17/tr-101725-press-briefing-transcript-african-department-annual-meetings-2025)

## Other formats

- [Markdown version](/en/news/articles/2025/10/17/tr-101725-press-briefing-transcript-african-department-annual-meetings-2025/index.md)
- [Structured JSON version](/en/news/articles/2025/10/17/tr-101725-press-briefing-transcript-african-department-annual-meetings-2025/index.json)
- [Bundle manifest](/en/news/articles/2025/10/17/tr-101725-press-briefing-transcript-african-department-annual-meetings-2025/bundle-manifest.json)

## Bibliographic details
- Published: October 16, 2025

---

### Regional growth outlook and macroeconomic environment
- Sub-Saharan Africa economic growth:
  - "expected to hold steady at 4.1 percent this year, with a modest pickup expected in 2026."
- Global external conditions noted:
  - "weaker demand, softer commodity prices, and tighter financial markets."
  - "oil prices are declining while the price of copper, coffee, and gold are fairly elevated."
- External financing and trade landscape:
  - "external financing conditions have improved somewhat, allowing a few countries, Kenya and Angola most recently, to access international capital markets."
  - "Tariffs on exports to the United States have increased, and preferential access under the Africa Growth & Opportunities Act (AGOA) has expired."
  - "The projected sharp decline in foreign aid also leaves some lower-income and fragile countries particularly exposed."
- Inflation and external buffers:
  - "inflation that has eased at the regional level but remains in double digits in quite a few countries in the region."
  - "external buffers that are under pressure and need to be rebuilt."

### Key vulnerabilities and risks
- Debt and domestic financial linkages:
  - "about half of the total public debt is held by domestic institutions."
  - "we estimate about 20 countries to be in a situation of high risk of debt distress. This comprises about 14 countries at high risk of debt distress and another six in actual debt distress."
  - Rising "debt service costs, which are crowding out development spending" and "a shift towards domestic financing that has deepened the Sovereign Bank nexus."
- Aid and financing risks:
  - "The projected sharp decline in foreign aid ... leaves some lower-income and fragile countries particularly exposed."
  - Countries have "limited fiscal space" to reallocate budgetary resources in response.
- Country-specific notes raised in Q&A:
  - Zimbabwe: progress toward restoring macroeconomic stability; "recourse to Central Bank financing has diminished quite a bit."
  - Senegal: IMF "have actively started engaging" and "a team that's going to be going to Dakar next week to advance discussions" following government disclosure of problematic public debt numbers.
  - Kenya: active "liability management exercise" referenced, including debt redenomination example; staff-level agreement discussions ongoing with missions in Nairobi.
  - Ghana: stabilization signs—"the economy is beginning to recover, inflation is beginning to decelerate"—but trade-offs on exchange-rate competitiveness noted.
  - Sierra Leone: "impacted the most" by declining ODA; higher domestic borrowing and domestic debt increases described.
  - Nigeria: decelerating inflation consistent with tightening monetary policy and exchange rate adjustment; structural reliance on oil and need for domestic revenue mobilization emphasized.
  - Rwanda: noted ability to "maintain the microeconomic stability" queried in context of global slowdown and trade policy shifts.

### Policy priorities and recommendations
- Domestic revenue mobilization (priority #1):
  - Modernize tax systems through digitalization.
  - Streamline inefficient tax expenditures.
  - Strengthen enforcement via targeted compliance strategies.
  - "Build public trust in tax institutions, strengthen institution capacity, and conduct careful impact assessment, including distributional analysis."
- Debt management and public finance (priority #2):
  - "Enhancing debt transparency, and strengthening public finance management can help reduce borrowing costs and unlock innovative financing."
  - Publish comprehensive public debt data and reinforce budget oversight.
  - Encourage active liability management (lengthening maturities, currency/denomination choices) while assessing cross-currency risks and export-currency alignments.
  - Ensure robust regulatory frameworks and capitalization plans for banks to limit sovereign-to-bank spillovers.
- Transparency and scrutiny for innovative financing:
  - Assess contingent liabilities from securitization of future revenues, PPPs, and similar instruments.
  - Prioritize transparency and parliamentary/public scrutiny for novel financing to avoid hidden fiscal risks.
- Balance short-term stabilization and long-term transformation:
  - Address macroeconomic imbalances as a prerequisite for sustainable growth, job creation, and long-term investments.
  - Use stabilization to create conditions for private investment and structural transformation, including promoting intra‑African trade (AfCFTA) and addressing non-tariff barriers.

### IMF engagement and support
- Financial support and capacity development:
  - "Since 2020, we have dispersed nearly $69 billion, including about 4 billion so far this year."
  - "Capacity development efforts also remain substantial, with countries in the region amongst the largest recipients of technical assistance."
- Country engagement examples:
  - Active program discussions initiated with Senegal; mission planned to Dakar.
  - Ongoing staff-level discussions and missions in Kenya.
  - Continued close engagement with Zimbabwe on policy reforms and reduction of Central Bank financing.

*Source: Press Briefing Transcript: African Department, Annual Meetings 2025 (October 16, 2025), IMF Communications Department.*

---


## References

- [Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)
- [Kenya and the IMF](http://www.imf.org/external/country/KEN/index.htm)
- [Nigeria and the IMF](http://www.imf.org/external/country/NGA/index.htm)
- [Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)
- [Sierra Leone and the IMF](http://www.imf.org/external/country/SLE/index.htm)
- [Transcripts](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2025/10/17/tr-101725-press-briefing-transcript-african-department-annual-meetings-2025_