The International Monetary Fund (IMF) is urging African countries to focus on boosting economic growth and strengthening public finances rather than rushing into debt restructuring. In a recent report, its economists highlighted that sustainable debt stabilization is possible without restructuring, noting over 60 such cases across Africa since 2000—even during the COVID-19 crisis. The key, they say, lies in combining fiscal discipline with real economic expansion, particularly in fragile, conflict-affected nations. Countries like Ghana, Zambia, and Ethiopia have sought IMF help following defaults, but critics argue the Fund’s austerity-focused approach is undermining essential services. As the continent tackles rising debt, the IMF’s message is clear: growth must come first, not just balance sheets.
SEMAFOR
