By zainab.joaque@awokonewspapersl.com
Washington, D.C. – As questions swirl about U.S. influence on international financial institutions, the International Monetary Fund (IMF) has reaffirmed that its engagement with African countries remains firmly rooted in individual national needs, not political pressure from powerful shareholders.
Speaking at the IMF’s Spring Meetings during the launch of the Regional Economic Outlook for Sub-Saharan Africa, Abebe Aemro Selassie, Director of the IMF’s African Department, addressed growing concerns about whether recent comments by the U.S. Treasury Secretary might signal a shift toward stricter lending conditions.
Selassie acknowledged the Treasury’s call for more accountability and reform enforcement in IMF-supported programs. Yet he pushed back against the suggestion that the Fund is caving to external political agendas.
“Our decisions are not influenced by shareholder pressure,” Selassie said. “Each country program is tailored to its unique circumstances. The challenges facing countries in the region—whether structural or cyclical—are taken into account carefully.”
He admitted that the reforms required by the IMF are not without pain. “I don’t think there are many countries that think that the adjustment efforts they’re being asked to make are easy ones,” he said.
Selassie painted a sobering picture of the region’s economic prospects. Sub-Saharan Africa’s fragile recovery, he explained, is under threat from tighter global financial conditions, reduced development aid, and lingering policy uncertainty. Growth forecasts have been revised downward, while debt levels remain a heavy burden for many nations.
“Financing constraints are real, but they’re not the only hurdle,” Selassie said. “To ensure sustainable growth, countries must also focus on boosting private sector activity and improving the business environment.”
Addressing the question of special support for countries emerging from defaults or under fiscal strain, Selassie noted the stark funding challenges facing African governments. “There is a brutal funding squeeze,” he said, pointing to both global headwinds and domestic weaknesses. In response, he urged governments to temper their ambitions and focus on realistic, homegrown strategies—such as improving tax collection, prioritizing spending, and enacting growth-friendly reforms.
Despite the grim outlook, Selassie stressed that the IMF remains committed to supporting the region. However, he emphasized that future success depends on strategic policymaking, difficult trade-offs, and long-term planning.
“The Fund’s engagement is not about reacting to the whims of its largest shareholders,” he concluded. “It’s about meeting countries where they are, and helping them move forward—even in tough times.” ZIJ/30/4/2025
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