By zainab.joaque@awokonewspapersl.com
Washington, D.C. – As the curtain fell on the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank, the spotlight turned sharply to Africa’s deepening debt burden and its implications for economic recovery.
Addressing the press, IMF Managing Director Kristalina Georgieva acknowledged the growing relevance of Africa in global economic discussions. “Africa had a stronger presence this year, not only because there are now three sub-Saharan African representatives in the International Monetary and Financial Committee (IMFC), but also because many of our Governors stressed the urgency of addressing the challenges facing heavily indebted countries,” she said.
According to the IMF, sub-Saharan African nations collectively owe $685.5 billion in external debt. In 2025 alone, the region is projected to pay $88.7 billion in debt service, with total debt accounting for nearly 25% of Africa’s GDP.
While debt is a global issue, Georgieva emphasized that sub-Saharan Africa remains especially vulnerable. The IMF now projects regional growth to slow to 3.8% in 2025, citing global economic uncertainty and policy volatility as key threats to recovery.
In response, Georgieva outlined a three-pronged strategy emerging from the meetings:
First, a renewed focus on the IMF and World Bank’s three-pillar approach for countries experiencing liquidity stress but not yet in debt distress. This approach emphasizes stronger domestic revenue mobilization, increased international financing, and greater private sector involvement in economic development.
Second, for countries already in debt distress, the IMF has introduced a new debt restructuring guide developed through the Global Sovereign Debt Roundtable. “This playbook outlines clear steps and timelines. If we stick to it, debt restructuring can be completed in under 12 months,” Georgieva explained, addressing previous delays under the Common Framework.
Third, the IMF is boosting its financial support capacity through the Poverty Reduction and Growth Trust. This mechanism will allow the Fund to extend more support to low-income countries, easing the burden of adjustment while encouraging reforms. “You do not borrow your way out of debt,” Georgieva stressed. “You grow your way out of debt.”
Georgieva concluded by noting Africa’s increasingly influential role in global finance. The challenge now, she said, is to translate that influence into tangible reforms and support that allow African nations to move beyond debt dependence and achieve sustainable growth. ZIJ/2/5/2025
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