INTERNATIONAL MONETARY FUND
REGIONAL
ECONOMIC
OUTLOOK
SUB-SAHARAN AFRICA
The Big Funding Squeeze
2023
APR
World Economic and Financial Surveys
REGIONAL
ECONOMIC
OUTLOOK
SUB-SAHARAN AFRICA
The Big Funding Squeeze
2023
APRIL
Copyright ©2023 International Monetary Fund
Cataloging-in-Publication Data
IMF Library
Names: International Monetary Fund, publisher.
Title: Regional economic outlook. Sub-Saharan Africa: the big funding squeeze.
Other titles: Sub-Saharan Africa : the big funding squeeze. | World economic and financial surveys.
Description: Washington, DC : International Monetary Fund, 2023. | World economic and financial surveys. |
Apr. 2023. | Includes bibliographical references.
Identifiers: ISBN 9798400235641 (English Paper)
9798400235771 (ePub)
9798400236044 (Web PDF)
Subjects: LCSH: Africa, Sub-Saharan—Economic conditions. | Economic forecasting—Africa, Sub-Saharan. |
Economic development—Africa, Sub-Saharan. | Africa, Sub-Saharan—Economic policy.
Classification: LCC HC800.R4456 2023
The Regional Economic Outlook: Sub-Saharan Africa is published twice a year, in the spring and fall, to
review developments in sub-Saharan Africa. Both projections and policy considerations are those of the
IMF staff and do not necessarily represent the views of the IMF, its Executive Board, or IMF Management.
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THE BIG FUNDING SQUEEZE iii
Contents
Acknowledgments. ...................................................................................................... v
Country Groupings ..................................................................................................... vi
Assumptions and Conventions ........................................................................................ vii
Executive Summary ..................................................................................................... 1
The Big Funding Squeeze. .............................................................................................. 2
Recent Developments: The Makings of a Funding Crisis .......................................................... 3
The Outlook for a Two-speed Recovery in 2024. ................................................................... 6
Four Main Policy Priorities. ........................................................................................... 7
Conclusion . ......................................................................................................... 13
References. ............................................................................................................. 14
Statistical Appendix ................................................................................................... 15
APRIL 2023 • INTERNATIONAL MONETARY FUND
iv REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
FIGURES
Figure 1. Sub-Saharan Africa: Sovereign Spreads, 2021–23 .......................................................... 3
Figure 2. Sub-Saharan Africa: Interest Payments to Revenue, Excluding Grants .................................... 4
Figure 3. Sub-Saharan Africa: Sources of Financing. .................................................................. 4
Figure 4. Sub-Saharan Africa: Real GDP Growth, 2023. ............................................................... 5
Figure 5. Real GDP Per Capita, 2019–24 ................................................................................ 5
Figure 6. Sub-Saharan Africa: Real GDP Growth, 2022–24 ........................................................... 6
Figure 7. Sub-Saharan Africa: Eurobonds Repayments, 2023–25. .................................................... 8
Figure 8. Sub-Saharan Africa: Debt Ratio at End-2022 and Fiscal Adjustment Needs .............................. 8
Figure 9. Sub-Saharan Africa: Drivers of Changes in Public Debt Ratio between End-2012 and End-2022 ....... 9
Figure 10. Sub-Saharan Africa: Median Inflation, December 2021–February 2023 ............................... 10
Figure 11. Sub-Saharan Africa: Changes in Policy Rate and Inflation .............................................. 10
Figure 12. Sub-Saharan Africa: Exchange Rate versus US Dollar ....................................................11
Figure 13. Climate Finance Flows to Sub-Saharan Africa, 2020. .................................................... 12
TABLES
Sub-Saharan Africa: Member Countries of Groupings ............................................................... vi
Sub-Saharan Africa: Member Countries of Regional Groupings ..................................................... vi
Sub-Saharan Africa: Country Abbreviations .......................................................................... vii
STATISTICAL TABLES
SA1. Real GDP Growth and Consumer Prices, Average ............................................................. 17
SA2. Overall Fiscal Balance, Including Grants and Government Debt ............................................. 18
SA3. Broad Money and External Current Account, Including Grants .............................................. 19
SA4. External Debt, Official Debt, Debtor Based and Reserves .................................................... 20
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE v
Acknowledgments
The April 2023 issue of the Regional Economic Outlook: Sub-Saharan Africa was prepared by a
team led by Wenjie Chen and under the supervision of Luc Eyraud and Catherine Pattillo.
The team included Hany Abdel-Latif, Anna Belianska, Marijn Bolhuis, Balazs Csonto, Cleary Haines,
Saanya Jain, Laurent Kemoe, Hamza Mighri, Saad Quayyum, Moustapha Mbohou Mama, Pritha Mitra,
Henry Rawlings, Ivanova Reyes, Andrew Tiffin, and Qianqian Zhang.
Charlotte Vazquez was responsible for document production, with assistance from Yao Nourdine Ouattara.
The editing and production were overseen by Cheryl Toksoz of the Communications Department.
APRIL 2023 • INTERNATIONAL MONETARY FUND
vi REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Country Groupings
Sub-Saharan Africa: Member Countries of Groupings
Oil Exporters Other Resource- Non-Resource- Middle-Income Low-Income Countries in Fragile
Intensive Intensive Countries Countries and Conflict-Affected
Countries Countries Situations1
Angola Botswana Benin Angola Burkina Faso Burkina Faso
Cameroon Burkina Faso Burundi Benin Burundi Burundi
Chad Central African Cabo Verde Botswana Central Cameroon
Congo, Republic of Republic Comoros Cabo Verde African Republic Central African
Equatorial Guinea Congo, Côte d’Ivoire Cameroon Chad Republic
Gabon Democratic Eswatini Comoros Congo, Chad
Nigeria Republic of the Ethiopia Congo, Republic of Democratic Comoros
South Sudan Eritrea Gambia, The Côte d’Ivoire Republic of the Congo, Democratic
Ghana Guinea-Bissau Equatorial Guinea Eritrea Republic of the
Guinea Kenya Eswatini Ethiopia Congo, Republic of
Liberia Lesotho Gabon Gambia, The Eritrea
Mali Madagascar Ghana Guinea Ethiopia
Namibia Malawi Kenya Guinea-Bissau Guinea-Bissau
Niger Mauritius Lesotho Liberia Mali
Sierra Leone Mozambique Mauritius Madagascar Mozambique
South Africa Rwanda Namibia Malawi Niger
Tanzania São Tomé Nigeria Mali Nigeria
Zambia and Príncipe São Tomé Mozambique South Sudan
Zimbabwe Senegal and Príncipe Niger Zimbabwe
Seychelles Senegal Rwanda
Togo Seychelles Sierra Leone
Uganda South Africa South Sudan
Zambia Tanzania
Togo
Uganda
Zimbabwe
1 Fragile and conflict-affected situations as classified by the World Bank, Classification of Fragile and Conflict-Affected Situations, FY2023.
Sub-Saharan Africa: Member Countries of Regional Groupings
The West Economic and Common East African Southern Southern Economic
African Monetary Market for Community African African Community of
Economic and Community of Eastern and Development Customs West African
Monetary Central African Southern Africa Community Union States
Union States
(WAEMU) (CEMAC) (COMESA) (* = EAC-5) (SADC) (SACU) (ECOWAS)
Benin Cameroon Burundi *Burundi Angola Botswana Benin
Burkina Faso Central African Comoros *Kenya Botswana Eswatini Burkina Faso
Côte d’Ivoire Republic Congo, *Rwanda Comoros Lesotho Cabo Verde
Guinea-Bissau Chad Democratic South Sudan Congo, Namibia Côte d’Ivoire
Mali Congo, Republic of Republic of the *Tanzania Democratic South Africa Gambia, The
Niger Equatorial Guinea Eritrea *Uganda Republic of the Ghana
Senegal Gabon Eswatini Eswatini Guinea
Togo Ethiopia Lesotho Guinea-Bissau
Kenya Madagascar Liberia
Madagascar Malawi Mali
Malawi Mauritius Niger
Mauritius Mozambique Nigeria
Rwanda Namibia Senegal
Seychelles Seychelles Sierra Leone
Uganda South Africa Togo
Zambia Tanzania
Zimbabwe Zambia
Zimbabwe
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE vii
Assumptions and Conventions
The following conventions are used in this publication:
In tables, ellipsis points (. . .) indicate “not available,” and 0 or 0.0 indicates “zero” or “negligible.” Minor
discrepancies between sums of constituent figures and totals are due to rounding.
An en dash (–) between years or months (for example, 2011–12 or January–June) indicates the years or months
covered, including the beginning and ending years or months; a slash or virgule (/) between years or
months (for example, 2011/12) indicates a fiscal or financial year, as does the abbreviation FY (for example,
FY 2012).
“Billion” means a thousand million; “trillion” means a thousand billion.
“Basis points (bps)” refer to hundredths of 1 percentage point (for example, 25 basis points are equivalent
to ¼ of 1 percentage point).
As used in this publication, the term “country” does not in all cases refer to a territorial entity that is a state as
understood by international law and practice. As used here, the term also covers some territorial entities that are
not states but for which statistical data are maintained on a separate and independent basis.
The boundaries, colors, denominations, and any other information shown on the maps do not imply, on the part
of the International Monetary Fund, any judgment on the legal status of any territory or any endorsement or
acceptance of such boundaries.
Sub-Saharan Africa: Country Abbreviations
AGO Angola CPV Cabo Verde LSO Lesotho SLE Sierra Leone
BDI Burundi ERI Eritrea MDG Madagascar SSD South Sudan
BEN Benin ETH Ethiopia MLI Mali STP São Tomé and Príncipe
BFA Burkina Faso GAB Gabon MOZ Mozambique SWZ Eswatini
BWA Botswana GHA Ghana MUS Mauritius SYC Seychelles
CAF Central African Republic GIN Guinea MWI Malawi TCD Chad
CIV Côte d’Ivoire GMB Gambia, The NAM Namibia TGO Togo
CMR Cameroon GNB Guinea-Bissau NER Niger TZA Tanzania
COD Congo, Democratic Republic of the GNQ Equatorial Guinea NGA Nigeria UGA Uganda
COG Congo, Republic of KEN Kenya RWA Rwanda ZAF South Africa
COM Comoros LBR Liberia SEN Senegal ZMB Zambia
ZWE Zimbabwe
APRIL 2023 • INTERNATIONAL MONETARY FUND
THE BIG FUNDING SQUEEZE 1
Executive Summary
A funding squeeze has hit the region hard. Persistent global inflation and tighter monetary policies have led
to higher borrowing costs for sub-Saharan African countries and have placed greater pressure on exchange
rates. Indeed, no country has been able to issue a Eurobond since spring 2022.
The funding squeeze aggravates a protracted trend that has been years in the making. The interest burden
on public debt is rising, because of a greater reliance on expensive market-based funding combined with a
long-term decline in aid budgets.
The lack of financing affects a region that is already struggling with elevated macroeconomic imbalances.
Public debt and inflation are at levels not seen in decades, with double-digit inflation present in half of
countries—eroding household purchasing power, striking at the most vulnerable, and adding to social
pressures. Estimates suggest that 132 million people were acutely food-insecure in 2022.
In this context, the economic recovery has been interrupted. Growth in sub-Saharan Africa will decline to
3.6 percent in 2023. Amid a global slowdown, activity is expected to decelerate for a second year in a row.
Still, this headline figure masks significant variation across the region. Many countries will register a small
pickup in growth this year, especially non-resource-intensive economies, but the regional average will be
weighed down by sluggish growth in some key economies, such as South Africa.
The funding squeeze will also impact the region’s longer-term outlook. A shortage of funding may force
countries to reduce resources for critical development sectors like health, education, and infrastructure,
weakening the region’s growth potential.
Four policy priorities can help address the macroeconomic imbalances in the context of current financing
constraints:
 Consolidating public finances and strengthening public financial management amid difficult funding
conditions. This will rely on continued revenue mobilization, better management of fiscal risks, and more
proactive debt management. International assistance remains also critical to alleviating governments’
financing constraints. For countries that require debt reprofiling or restructuring, a well-functioning
debt-resolution framework is vital to creating fiscal space.
 Containing inflation. Monetary policy should be steered cautiously until inflation is firmly on a downward
trajectory and projected to return to the central bank’s target range.
 Allowing the exchange rate to adjust, while mitigating the adverse effects on the economy, including the
rise in inflation and debt due to the currency depreciations.
 Ensuring that important efforts to fund and address climate change do not crowd out basic needs, like
health and education. Climate finance provided by the international community must come on top of
current aid flows.
Regional Economic Outlook Notes. A separate series of analytical notes are provided on topics of current
interest. “Geo-Economic Fragmentation: Sub-Saharan Africa Caught Between the Fault Lines” demon-
strates that sub-Saharan Africa stands to lose the most in a severely fragmented world, and stresses the
need for building resilience. “Managing Exchange Rate Pressures in Sub-Saharan Africa: Adapting to New
Realities” outlines the drivers and consequences of recent exchange-rate pressures and discusses policies
to help soften the impact on the region’s economies. “Closing the Gap: Concessional Climate Finance
and Sub-Saharan Africa” considers the critical need for concessional finance in helping the region address
climate change and explores ways in which additional flows might be unlocked.
APRIL 2023 • INTERNATIONAL MONETARY FUND
2 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
The Big Funding Squeeze
The confluence of higher global interest rates, elevated sovereign debt spreads, and exchange rate
depreciations, among other factors, has created a funding squeeze for many countries in sub-Saharan
Africa. This challenge comes on top of policy struggles from the ramifications of the COVID-19
pandemic and the cost-of-living crisis. Reflecting these considerations, economic activity in the
region will remain subdued in 2023, with growth at 3.6 percent before rebounding to 4.2 percent in
2024 predicated on a global recovery, subsiding inflation, and the winding down of monetary policy
tightening.
Sub-Saharan Africa facing funding squeeze
Donor flows
are drying up
%
Borrowing costs Legacy of recent
are rising crises remain
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 3
Recent Developments: The Makings of a Funding Crisis1
Conjunctural factors have aggravated sub-Saharan Africa’s already difficult
financing situation…
The region’s financing options have deteriorated significantly over the past year. The acceleration in the tight-
ening of global monetary policy, prompted by the rapid pickup in global inflation after the onset of Russia’s
war in Ukraine, has led to higher interest rates worldwide and raised borrowing costs for sub-Saharan African
countries, both on domestic and international markets.
Sovereign spreads for sub-Saharan Africa have soared Figure 1. Sub-Saharan Africa: Sovereign Spreads,
(Figure 1)—to three times the emerging market average 2021–23
since the start of the global tightening cycle. Higher (Basis points, simple average)
interest rates on US treasury bonds and the search
Failure
for safe assets amid global uncertainty pushed the 1,250 of SVB
US dollar effective exchange rate to a 20-year high in Russian
invassion Sub-
2022, increasing the value of dollar-denominated debt 1,000 of Ukraine Saharan
and dollar-denominated interest payments. Together, Start of US Africa
tightening
these factors have added to the region’s external 750 768
bps
borrowing costs.
500 225
Higher uncertainty amid the pandemic and the war in bps
EMBIG
Ukraine has also led to risk repricing, disproportion-
250
ately affecting sub-Saharan African countries because Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
of lower credit ratings, and cutting off virtually all
Source: Bloomberg Finance, L.P.
frontier markets from international market access since Note: Sub-Saharan Africa includes Angola, Côte d’Ivoire,
Ethiopia, Gabon, Ghana, Kenya, Mozambique, Namibia,
spring 2022.2 More specifically, Eurobond issuances
Nigeria, Senegal, South Africa. EMBIG = Emerging Market
for the region declined from $14 billion in 2021 to Bond Index Global.
$6 billion in the first quarter of 2022.
The effect has been a drastic and pro-cyclical tightening of financing conditions, which has aggravated under-
lying vulnerabilities. Borrowing costs have increased significantly over the past decade, with interest payments
as a share of revenue doubling over the same period. At 11 percent of revenues (excluding grants) for the median
sub-Saharan African country in 2022, interest payments are about triple those of the median advanced economy
(Figure 2). Structural shifts behind this increase in borrowing costs include a decline in aid budgets to the region
that led some countries to turn to market-based finance, which is more expensive (Figure 3). Increased integra-
tion in international debt markets and deepening of domestic financial markets also made it easier to contract
more private domestic and external debt on non-concessional terms. Finally, inflows from China, for a while a
significant source of financing, have declined markedly more recently.
…on top of the fallout from multi-year shocks…
The financing squeeze comes at a most unfortunate time, as the region is facing elevated economic imbalances.
In the wake of the COVID-19 pandemic and the war in Ukraine, macroeconomic imbalances have returned as a
first order challenge for most African countries, and they are pushing countries close to the edge (Selassie 2022).
Inflation remains elevated and volatile. The median inflation rate in the region was about 10 percent in February
2023—more than double since the beginning of the pandemic. Besides registering double-digit headline
inflation in roughly half of the countries in the region, about 80 percent are also experiencing double-digit food
1 For more discussion on the origin of the financing crisis in sub-Saharan Africa, see also Selassie 2023.
2 Although frontier markets represent only one-third of the countries, they account for 60 percent of the region’s GDP and 60 percent
of the total population.
APRIL 2023 • INTERNATIONAL MONETARY FUND
4 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Figure 2. Sub-Saharan Africa: Interest Payments Figure 3. Sub-Saharan Africa: Sources of Financing
to Revenue, Excluding Grants (Percent of regional GDP)
(Percent, median)
Eurobond
50 GHA 4 issuances
40 3 ODA
MWI
ZMB
30 2 Loan disbursements
from China
20 Frontier market
economies 1
SSA
10 Oil exporters 0
2000 03 06 09 12 15 18 21
0
Sources: Bloomberg Finance, L.P. ; Organisation for Economic
2012 2022 Co-operation and Development, OECD.stat; and World Bank,
Source: IMF, World Economic Outlook database. International Debt Statistics.
Note: See pages vi-vii for country acronyms and groupings. Note: ODA = Official Development Aid.
inflation in February. However, fuel price pressures have decelerated recently because international prices fell
from their peak in mid-2022 by up to 30 percent as of the end of 2022, providing some reprieve for the region.
About half of the countries have now reported a deceleration in inflation in recent months, but there were also
resurgences; and because subsidies on fuel and food prices are being phased out this year (Cameroon, Central
African Republic, Ethiopia, Senegal), inflation will likely remain volatile throughout 2023. A few countries also
faced pressures to raise public wages in the second half of 2022 because of increases in the cost of living,
triggered by higher food and fuel prices (Cameroon, Mali, Rwanda, The Gambia).
Public debt as a share of GDP is relatively high. Sub-Saharan Africa’s public debt ratio—at 56 percent of GDP in
2022—has reached levels last seen in the early 2000s. Since the pandemic, the debt increase has been driven
by widening fiscal deficits because of overlapping crises, slower growth, and exchange rate depreciations.
Elevated public debt levels have raised concerns about debt sustainability, with 19 of the region’s 35 low-income
countries already in debt distress or facing high risk of debt distress in 2022—the same situation reported in the
October 2022 Regional Economic Outlook: Sub-Saharan Africa.
Most currencies in the region depreciated against the US dollar in 2022. For those already grappling with high
inflation, the weakening of the currency relative to the dollar made matters even worse because the region
is highly dependent on imports with a significant share of them invoiced in dollars. Currency depreciations
also contributed to higher general government debt because about 40 percent of sub-Saharan Africa’s debt is
external as of 2021. Although exchange rate pressures have eased since November 2022—in some cases because
significant depreciations have already taken place—they remain elevated and volatile.
…resulting in another year of disrupted recovery...
Given this challenging environment, the region’s growth will decline to 3.6 percent in 2023 from 3.9 percent
in 2022 following the strong rebound of 2021. This subdued outlook in sub-Saharan Africa marks a growth
slowdown, the second year in a row. Some common factors explain the growth underperformance, including
the rise in central bank rates to fight inflation and the war in Ukraine dampening global economic activity and
thus, export demand for the region. Nonetheless there are large variations across the region (Figure 4). Niger,
the Democratic Republic of the Congo, and Senegal are on the higher end of the region’s growth distribution,
with this year’s coming online of oil and gas in those countries expected to contribute significantly to higher GDP
growth. On the opposite end, the significant economic contraction in Equatorial Guinea is a result of a decline
in oil production. Meanwhile, South Africa’s growth is projected to decelerate sharply to 0.1 percent in 2023,
weighed down by an intensification of power outages, a weaker external environment, and a negative carry-over
effect from the growth slowdown at the end of 2022.
INTERNATIONAL MONETARY FUND • APRIL 2023
Non-resource-intensive
Oil exporters
Other resource-intensive
THE BIG FUNDING SQUEEZE 5
Figure 4. Sub-Saharan Africa: Real GDP Growth, 2023
(Percent, fragile countries in red)
Average:
NGA
3.6
SLE UGA
Non-resource-intensive countries COM MUS SSD CIV
Oil exporters
GAB BWA MDG GNB TZA GMB RWA
Other resource-intensive countries
CAF ERI TCD COG CPV MOZ GIN NER
LSO ZWE SWZ AGO ZMB LBR MLI TGO ETH
GNQ ZAF GHA STP MWI NAM BDI SYC CMR BFA KEN BEN COD SEN
0 3 6 9
Source: IMF, World Economic Outlook database.
Note: See pages vi-vii for country acronyms and groupings.
The region’s financial sector has held up relatively well. The share of non-performing loans has improved
slightly—down to about 7½ percent in 2022 from nearly 9 percent of total loans for the median country in 2021.
After a temporary decline during the pandemic, bank profitability has bounced back to the pre-COVID-19 trend
as of mid-2022. However, the capital adequacy of banks in the region has dipped slightly in the last two years
relative to its pre-pandemic peak in 2019.
…and undermining economic and development prospects.
Unlike many major advanced economies, countries in Figure 5. Real GDP per Capita, 2019–24
sub-Saharan Africa had limited fiscal space entering (2019 = 100, dashed line indicates pre-crisis trend)
the pandemic recession, hampering policymakers’ 110
ability to mount an effective response. This has Advancedeconomies
105
resulted in larger scarring effects on the economy,
including from disruptions to education. The current 100
funding squeeze is constraining many countries’ ability
95
to address these scars, contributing to the muted 2019 2021 2023
recovery. Moreover, authorities are forced to reduce 110
resources for critical development sectors such as Sub-Saharan Africa
105
health, education, and infrastructure, weakening the
region’s medium-term growth prospects. Partly for 100
these reasons, the catch-up in growth has remained
95
elusive, with GDP per capita remaining stubbornly 2019 2021 2023
below pre-pandemic trend (Figure 5). Source: IMF, World Economic Outlook database.
The lack of fiscal space has also made it challenging for countries to address the vast social needs, espe-
cially those in the most vulnerable segments of the population. Insufficient funding meant that the authorities
struggled to scale up targeted support when the region faced record-high food, fuel, and fertilizer prices in
2022. In fact, the cost-of-living crisis remains a major concern for sub-Saharan Africa given the high incidence of
poverty—35 percent of the population in sub-Saharan Africa was estimated to live under $2.15 a day as of 2019
(latest available data from the World Bank Low-Income Dataset). About 132 million people were estimated to be
acutely food-insecure in 2022, an upward revision from the estimate of 123 million in the October 2022 Regional
Economic Outlook: Sub-Saharan Africa.
APRIL 2023 • INTERNATIONAL MONETARY FUND
6 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
The Outlook for a Two-speed Recovery in 2024
Consistent with the global rebound, regional growth will pick up from 3.6 percent
to 4.2 percent in 2024…
Sub-Saharan Africa is poised to grow at 4.2 percent in 2024 from 3.6 percent in 2023. Almost four-fifths of
the countries are projected to register a growth pickup in 2024, driven by higher private consumption and
investment. Importantly, the recovery for sub-Saharan Africa is linked intricately to global developments that are
conditional on the realization of three key global factors:
 Global economic activity is assumed to continue to recover from the effects of the war in Ukraine. This would
translate into tailwinds for exporters in the region, while the dissipation of supply chain bottlenecks will ease
import prices.
 Global inflation is projected to recede further in 2024. Thus, it is assumed that major central banks may slow
the pace of monetary policy tightening in the second half of 2023 as inflation (excluding volatile food and
energy prices) has been declining at a three-month rate—although at a slower pace than headline inflation—in
most (though not all) major economies since mid-2022. Subsequently, a slower pace of tightening implies less
pressure on exchange rates and spreads for the region. However, global interest rates are expected to remain
elevated and well above pre-pandemic levels.
 Crude oil prices are expected to continue to fall by about 6 percent in 2024 relative to the previous year as
demand pressures subside. Because net fuel importers represent two-thirds of the region’s GDP, lower prices
should affect sub-Saharan Africa’s growth positively. Nonfuel commodity prices are projected to remain
broadly unchanged.
Of course, there is large heterogeneity in growth across subgroups. The growth rebound is expected to be
primarily driven by the non-resource-intensive and other resource-intensive countries (Figure 6). The former are
Chapter 1 - Figure 6
projected to grow by 6.2 percent in 2024, following 5.7 percent in 2023, reflecting more dynamic and resilient
economies—including those in the Eastern African
Figure 6. Sub-Saharan Africa: Real GDP Growth,
Community—and aided by the recovery in non-mining
2022–24
activities including agriculture. Other (non-oil)
(Percent)
resource-intensive countries are also projected to
Sub-Saharan 2022–23
post strong rebounds, in some cases boosted by new
Africa |
mining projects (iron ore in Liberia and Sierra Leone; 2023–24
renewable energy commodities in the Democratic Oil exporters |
Other resource-intensive
Republic of the Congo and Mali). In South Africa,
countries excluding
activity is expected to recover in 2024 as the energy South Africa |
crisis abates and the external environment improves.
South Africa |
However, growth among oil exporters is projected
Non-resource-
to decelerate in 2024 to 3.1 percent from 3.3 percent intensive countries |
in 2023, mostly because of the continued decline in
0 2 4 6
crude oil prices and production slowdowns. Nigeria’s
Source: IMF, World Economic Outlook database.
growth is forecast to decline to 3.0 percent next year. Note: See pages vi for country groupings.
Consistent with the expected receding of global inflation, the median inflation for the region is projected to
be down at 5 percent by the end of 2024 (year-over-year), still above pre-pandemic levels but half that at the
end of 2022. Sub-Saharan Africa is a large importer of food and energy items, which average 50 percent of
the region’s consumption basket. Thus, the recent onset in the decline in global food and fuel prices that is
projected to continue throughout this year and next, is expected to contribute much to the slowdown in regional
headline inflation.
L
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 7
…but faces significant downside risks.
The outlook for the global economy is clouded by sizable uncertainty because of the multiple shocks in recent
years and ongoing financial sector turmoil. Compared to the January 2023 World Economic Outlook Update,
global recession risks have increased, while concerns about stubbornly high inflation persist. Thus, global risks
are squarely to the downside (April 2023 World Economic Outlook).
The ongoing banking sector turbulence in major economies could impact the region through several channels.
A deterioration of business and consumer confidence could depress activity in the key advanced economies
and spill over to African countries through lower demand for imports and lower commodity prices. In addition,
while financial conditions in sub-Saharan African countries are not closely correlated with those in the United
States or Europe, banking sector stress in the latter economies could nonetheless increase global risk aversion,
which would aggravate the funding squeeze even further for the region. As in past episodes of global financial
stress, a broad-based outflow of capital from emerging market and developing economies could occur, causing
further dollar appreciation, which would worsen vulnerabilities in countries with large dollar-denominated
external debt. The dollar appreciation would further depress global trade due to many products being invoiced
in dollars.
Apart from risks in the banking sector, three additional types of global downside risks are worth highlighting.
First, stickier-than-expected inflation could prompt further monetary policy tightening. This could lower net
financial inflows to sub-Saharan Africa and aggravate balance of payment pressures, which would lead to
domestic currency depreciations and squeeze already tight financing conditions even further. Another global risk
is an escalation of the war in Ukraine, which could perpetuate already elevated global uncertainty and raise food
and energy prices, making the financing environment even more difficult. Finally, a worsening in geoeconomic
fragmentation could have negative spillovers into sub-Saharan Africa, including rising trade barriers and higher
food prices, because the region relies highly on commodity exports and is sensitive to global demand and price
shocks (Analytical Note “Geoeconomic Fragmentation: Sub-Saharan Africa Caught Between the Fault Lines”).
Under a global downside scenario that considers severe financial sector stress, global real GDP growth in 2023
could be 1.8 percentage points below baseline and 2024 growth could be lower by 1.4 percentage points
(April 2023 World Economic Outlook). The overall effect on global output is about one fourth the size of the
impact of the 2008–09 global financial crisis. The slowdown would be accompanied by a disinflationary impulse,
including lower oil and gas prices. Global trade would decrease because of depressed global demand, increased
uncertainty, and the rising value of the dollar. The cumulative cost to sub-Saharan Africa would amount to a loss
of −1.9 percent of GDP over 2023–24, with oil exporters experiencing more losses (−2.5 percent) relative to other
resource-intensive countries (−1.8 percent) and non-resource-intensive countries (−1.4 percent).
Four Main Policy Priorities
The global slowdown, higher interest rates, and a dramatic pickup in global inflation have pushed many countries
closer to the edge. The following four priorities are centered around policy strategies that aim to help policy-
makers address macroeconomic imbalances in the context of severe financing constraints.
Fiscal policy amid tighter financial conditions
Policymakers in sub-Saharan Africa have to adapt to an environment with tighter financing conditions, which has
two important implications for the conduct of fiscal policy. First, debt vulnerabilities (already elevated) are likely
to worsen. With rising borrowing costs, countries may find it challenging to refinance their existing liabilities and
rollover longer maturities. This could create liquidity problems, which may, over time, raise solvency questions
in some cases. Second, policymakers will struggle to cover even the most essential expenses for basic services
let alone securing financing for further progress toward the Sustainable Development Goals.
APRIL 2023 • INTERNATIONAL MONETARY FUND
Figure 7. Sub-Saharan Africa: Eurobonds Repayments, 2023–25
(Billions of US dollars)
Figure 7. Sub-Saharan Africa: Eurobonds Figure 8. Sub-Saharan Africa: Debt Ratio at
Repayments, 2023–25 End-2022 and Fiscal Adjustment Needs
(Billions of US dollars) (Percent of GDP)
8 9
6 5
Others
4 1
Kenya Nigeria -3
2
South
Africa -7
0 0 40 80 120 160
2023 2024 2025
Source: Bloomberg Finance, L.P.
Sources: IMF, World Economic Outlook; and IMF staff calculations.
Note: Fiscal adjustment needs are computed as of 2023 in order
to reduce debt ratio to 70 percent of GDP for countries above
threshold within 6 years or stabilize at latest level for countries
below threshold. Negative fiscal adjustment needs imply available
fiscal space.
SLoouorckein: Bgl oaohmebaedrg, Fthinea ndceiffi Lc.Pu.lt funding environment for the region is likely to remain and become a key feature
of the new normal. Over the next few years, the region’s countries are projected to have some of the world’s
highest interest bills relative to revenues, exceeding 50 percent in a few cases. In the next two years alone, a
sizable share of outstanding Eurobond debt will come due—about $6 billion in 2024 and another $7 billion in
2025 (Figure 7). If countries struggle to make repayments or rollover debt, it could have potential repercussions
on the region’s economic growth and social development.
In this context, consolidating public finances in the context of a credible and transparent medium-term fiscal
policy framework remains a priority for the region. As highlighted in the October 2022 Regional Economic
Outlook: Sub-Saharan Africa, there is nonetheless heterogeneity among countries. Those that still have some
fiscal space can use it to continue making much needed investments in human and physical capital to address
development needs. But most countries with elevated debt vulnerabilities need to consolidate their public
finances to preserve fiscal sustainability. For some, adjustment needs are moderate, but for others, adjustment
needs are very large, and it is unlikely that fiscal consolidation alone will be enough to ensure fiscal sustainability
(Figure 8). In this case, the necessary adjustment could be accompanied by debt reprofiling or restructuring.
Countries have already started fiscal adjustment. After a significant deterioration in 2020, the median fiscal deficit
ratio in sub-Saharan Africa started to decline in 2021, with a consolidation of almost 1 percentage point of GDP
projected for 2023. Fiscal consolidation, which is expected to continue into the medium term, can be pursued
in a way that minimizes possible negative impacts on growth and poverty. This will require increased efforts
to boost revenue mobilization, but also prioritizing and increasing the efficiency of spending where possible
including the phasing out of untargeted fuel subsidies. Crucially, fiscal adjustment should make allowances for
continuing social spending and protecting the most vulnerable populations amid the ongoing cost-of-living
crisis. This can be done through targeted transfers to those particularly exposed to higher energy and food
prices or an expansion of existing social safety nets. Saving part of the windfalls from higher commodity prices
will be especially helpful for commodity exporters with elevated fiscal vulnerabilities.
Beyond fiscal consolidation, authorities can take additional steps to adapt to a world of tighter financing
constraints:
 Managing fiscal risks resulting from the funding squeeze will be critical to improve fiscal sustainability. Given
tighter budgets, the risk of fiscal slippage rises along with the temptation for governments to accumulate
arrears, increase off-budget spending, extend guarantees and contingent liabilities. All these operations can
sdeen
tnemtsujdA
8 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Debt stock
INTERNATIONAL MONETARY FUND • APRIL 2023
Figure 9. Sub-Saharan Africa: Drivers of Changes in Public Debt Ratio
Between End-2012 and end-2022THE BIG FUNDING SQUEEZE 9
(Cumulative change, percentage points of GDP)
translate into so-called “stock-flow adjustments”3, Figure 9. Sub-Saharan Africa: Drivers of Changes in
which have contributed significantly to the debt Public Debt Ratio between End-2012 and End-2022
increase in the past decade (Figure 9). Containing (Cumulative change, percentage points of GDP)
these flows through better public financial manage-
70
ment practices and better risk management is
50
essential to improve debt dynamics, including by
strengthening fiscal transparency and oversight of 30
state-owned enterprises. 10
 By reinvigorating efforts to boost domestic -10
revenue mobilization, countries can generate -30
more resources for development spending, and -50
attract more financing because a country’s revenue Exchange ratedepreciation Nominal interest rate
stream is a main metric for its debt repayment GDP deflator Real GDP growth
Cumulative primary deficits Stock flows adjustments
capacity. Sub-Saharan African countries lag signifi- Change in debt to GDP
cantly in revenue collections, with a median tax
Sources: IMF, World Economic Outlook database; and IMF staff
ratio of only 13 percent of GDP in 2022, compared calculations.
with 18 percent in other emerging economies
and developing countries and 27 percent in advanced economies. Successful revenue mobilization efforts
often require pursuing revenue administration reforSmosu racnesd: IiMmFp, rWovorinldg E tchoeno dmeics iOgunt looof kt adxa tpaboalsicei;e asn,d i nIMclFu sdtainffg c ablcyu lations.
expanding the base for value added tax and leveraging digitalization in tax collection (Togo, Guinea-Bissau).
 Effective and proactive debt management is critical to lowering debt risks. Debt management can help strike
the balance between funding the government’s needs and ensuring that debt levels remain sustainable. This
includes enhancing debt reporting, lengthening maturities, and avoiding bunching of repayments to mitigate
refinancing risks.
 For some countries that are likely to experience aggravated debt vulnerabilities and require debt reprofiling
or restructuring, a well-functioning debt-resolution framework is vital to creating fiscal space. As the variety
of debt instruments has widened, the creditor base has also become more diversified and negotiations more
complex. Four countries in sub-Saharan Africa are currently seeking or are in the process of restructuring their
debt under the Common Framework—Ghana is the latest in the group (others are Chad, Ethiopia, and Zambia).
The Common Framework constitutes a step toward finding an effective and consistent way for the Group of
Twenty and Paris Club official creditors to provide debt treatment for low-income countries, in case of need.
Thus far, coordination among creditors has been challenging and the process has been slower than antici-
pated. Potential reforms include defining processes that are more predictable and timelier, earlier sharing of
information between creditors and the international financial institutions, and introducing a standstill on debt
service during the debt treatment process after staff-level agreement on an IMF program has been reached.
Finally, international assistance remains critical to alleviating governments’ financing constraints. Donor nations
should ensure that official development assistance continues to go to those countries in greatest need. Many
fragile and conflict-affected states, for instance, still rely primarily on official development assistance for
financing their development needs. Donors can work with recipient countries towards setting a more modest
and well-defined set of objectives, such as public health initiatives or targeted capacity building, where smaller,
more focused interventions can make a difference. In addition, higher volumes of countercyclical financing,
particularly from International Financial Institutions (IFIs), are necessary to offset the highly procyclical nature
of private capital flows. Countercyclical financing helps countries that have lost market access or are subject to
capital outflows to smooth the adjustment, and, for instance, avoid abrupt and disruptive spending cuts.
3 Stock-flow adjustments refer to discrepancies between the annual change in public debt and the budget deficit, a prominent feature of
debt dynamics in many sub-Saharan African countries. In such a case, the fiscal deficit may not be a good depiction of financing needs
as debt may increase more (or less) than the fiscal deficit. A positive stock-flow adjustment means that the increase in government debt
exceeds the annual deficit (or decreases less than implied by the surplus).
APRIL 2023 • INTERNATIONAL MONETARY FUND
10 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Monetary policy amid high inflation
By the beginning of 2023, inflation had started to fall in about half of countries in sub-Saharan Africa, while
inflation is still rising or very volatile for the rest. Regardless of the trajectory, inflation remains high, with at
least 20 out of 45 countries still facing double-digit inflation, and a median inflation of about 10 percent as of
February 2023, more than twice the level at the end of 2019 (Figure 10). Median core inflation, which excludes
energy and basic food prices, was more than 6 percent as of the end of February (where data were available) but
remains volatile, showing no clear signs of decline. Projections point to inflation staying above pre-pandemic
levels throughout 2027. Thus, policymakers have to continue this delicate dance between keeping inflation in
check while being mindful of the still-fragile recovery. The good news is that external factors (such as imported
food and energy or swings in the exchange rate) rather than domestic demand pressures have driven much of
the inflation in the region. Many of these external factors have subsided in recent months, and thus inflation is
likely to follow suit, but because the transmission of lower international prices into domestic markets will take
time, inflation is expected to remain above pre-pandemic levels in the near term.
Almost all central banks in the region have hiked policy rates since December 2021,4 with cumulative rate hikes
larger in countries with higher inflation. However, the median interest rate hike was only about 270 basis points
in sub-Saharan Africa between end-2021 and February 2023—lower by almost 130 basis points compared with
the median in emerging market and developing economies outside the region (Figure 11). For most countries,
current policy rates remain well below average policy rates over the past decade, while short-term real rates in
the region are also still broadly in negative territory. In some countries, growth in reserve money continues to
exceed nominal GDP growth (Nigeria, Malawi). Angola is the only country to have cut the policy rate in early
2023, given the sharp decline in headline inflation.
Figure 10. Sub-Saharan Africa: Median Inflation, Figure 11. Sub-Saharan Africa: Changes in Policy
December 2021–February 2023 Rate and Inflation
Chapter 1 - Figure 11
(Percent, year-over-year) (Percentage points, between December 2021 and
February 2023)
15 Lorem ipsum
Botswana Policy rate Inflation (0.4)
Countries where inflation is
13 still increasing or volatile WAEMU (0.0)
CEMAC (3.1)
Mauritius (4.2)
11
Eswatini (2.4)
All sub-Saharan Rwanda (18.8)
9
African countries Namibia (2.6)
Lesotho (4.5)
7
South Africa (1.1)
Countries where inflation is declining Congo, Dem. Rep. (11.5)
5 Kenya (3.5)
Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Zambia (–6.8)
Uganda (6.3)
Sources: Haver Analytics; country authorities; and IMF staff
The Gambia (6.0)
calculations.
Mozambique (3.1)
Note: Country groupings are based on recent evolution of
inflation for the last 3 months. The sample includes 37 countries Nigeria (6.3)
with available data. Malawi (13.9)
Angola (–15.2)
Sierra Leone (27.2)
Ghana (40.2)
0 10 20 30
Sources: Haver Analytics; and IMF, International Financial Statistics.
Note: Numbers indicate change in inflation.
4 Rates have stayed flat in a few countries like the Democratic Republic of the Congo and the Seychelles as of the end of
February 2023.
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 11
What is needed to move ahead? Policymakers need to adjust the pace of monetary policy tightening to both
the level and trajectory of inflation, in close coordination with fiscal policy, which can also tame domestic demand
pressures where they exist and contain money growth:
 In cases where countries are still experiencing very high inflation, continued acceleration, or significant
volatility, authorities need to continue to tighten policy rates decisively because these countries are
susceptible to second-round effects and de-anchoring of inflation expectations. Tackling both after they
become entrenched will be very difficult.
 In countries that have signs of inflation peaking, but where inflation is still relatively elevated, authorities need
to steer monetary policy cautiously until inflation is firmly on a downward trajectory, and inflation projections
return within the target band of the central bank in the medium term.
More generally, given the uncertainty in predicting turning points in the inflation trajectories, monetary policy
needs to be data-dependent based on country-specific economic developments, including paying particular
attention to wage growth in the coming months, but also international food and energy price developments
because food and energy make up 50 percent of the region’s consumption basket on average.
Countries with pegs or heavily managed floats have generally experienced lower inflation than those without
pegs, but their currency arrangement constrains their ability to control the pace of monetary policy tightening.
Anchor currencies in the region include the euro (West African Economic and Monetary Union and Central
African Economic and Monetary Community), the South African rand, and the US dollar—all subject to a different
pace of monetary policy tightening by their respective central banks. Thus, currency peggers will not only have
to keep a close watch on elevated inflation and its trajectory but also keep policy rates in lock with the anchor
policy rate to preserve external stability and foreign exchange reserves.
Exchange rate management amid large depreciation pressures
Sub-Saharan African countries experienced significant Figure 12. Sub-Saharan Africa: Exchange Rate
exchange rate depreciations in 2022 (Figure 12), exac- versus US Dollar
erbating the financing crisis by increasing the external (Percent change from September 2021 to February
debt service burden. These pressures were predom- 2023. Asterisk = Peg)
inantly brought on by shifts in global fundamentals,
including increases in interest rates in advanced * * * * * *
* *
economies and adverse terms of trade. Currency
*
**
* *
depreciations contributed to a rise in inflation and
*
public debt while deteriorating the trade balance in the * * *
Up >20
near-term. Exchange rate pressures also manifested
Up 10-20
in the depletion of reserve assets—about a quarter of Up 0-10 *
countries had reserves below three months of imports Down 0-10
at the end of 2022—because foreign exchange inflows Down 10-20 *
Down 20-30 *
slowed down and central banks used their reserves to *
Down 30-50
finance imports (Analytical Note “Managing Exchange Down > 50
Rate Pressures—Adapting to New Realities”). Source: Bloomberg Finance, L.P.
Many countries acted to contain these pressures in 2022. The tightening of monetary policy helped to support
their currencies, and some countries also intervened in foreign exchange markets to resist exchange rate
pressures. As reserves dwindled over the course of 2022, the degree of intervention also slowed down. Many
countries also applied administrative measures to control foreign exchange flows in 2022, including multiple
currency practices (Nigeria), price control through moral suasion, and banning foreign currency transactions
for local businesses. Some countries also resorted to unconventional measures such as buying oil with gold
(Ghana), and foreign exchange rationing became even more acute in 2022 (Ethiopia, Nigeria).
APRIL 2023 • INTERNATIONAL MONETARY FUND
12 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Nonetheless, some adjustment of currencies seems unavoidable in many cases. There are certainly some
reasons for sub-Saharan African countries to resist exchange rate pressures, including an elevated share of
foreign-currency debt and weakly anchored inflation. But countries have to adjust to new fundamentals of
higher global interest rates and tighter financing conditions that are expected to last into the foreseeable future.
For most countries, the low levels of reserves limit the scope for interventions.
Policymakers can take several steps to mitigate possible adverse impacts on the economy as a result of the
necessary currency adjustments. In countries where inflation is aggravated by the exchange rate passthrough,
tighter monetary policy will help alleviate the pressure by keeping inflation expectations in check and stem
capital outflows while attracting inflows. Where fiscal imbalances are key drivers of exchange rate pressures,
fiscal consolidation can help to rein in external imbalances and contain the increase in debt related to
currency depreciation.
In some cases, for countries that have sufficient reserve buffers, the use of foreign exchange intervention can
reduce the volatility of exchange rate. For instance, for those with shallow foreign exchange markets, weak
monetary policy credibility, and large foreign exchange mismatches, foreign exchange intervention can tempo-
rarily reduce some of the costs associated with excessive exchange rate movements. However, countries can
easily run out of reserves if exchange rate pressures persist because of fundamental forces.
Responding to climate change without sacrificing basic needs
Critical development needs, like schooling, health, and infrastructure services, are in danger of not being
adequately filled under the funding squeeze. Most governments have limited fiscal space, hampering their
ability to protect the most vulnerable and allocate sufficient funds to essential development sectors. Limited
financing makes it particularly challenging to address the ongoing food security crisis that is affecting the region.
If the difficulties in addressing basic needs were not enough already, climate change is presenting additional
spending pressures on shrinking fiscal budgets. For instance, cyclone Freddy—one of the latest in a series of
climate shocks to the region—has battered vulnerable families and communities in southern Africa, but countries
have limited means for climate adaptation. For the
Figure 13. Climate Finance Flows to Sub-Saharan
African continent alone, adaptation costs could
Africa, 2020
reach $50 billion per year by 2050, in a 2-degree
Other flows: $0.6 bn
Celsius scenario (GCA 2021), and mitigation costs
for a clean energy transition in Africa have been
estimated at around $190 billion per year until 2030 Public grants: Private flows:
$7.5 bn $3.1 bn
(IEA 2022). However, climate funding to the region
remains well below these needs, with private and
public sources estimated at about $22 billion in 2020,
as shown in Figure 13 (Analytical Note “Closing the
Public non-
Public concessional
Gap: Concessional Climate Finance and Sub-Saharan concessional
debt: $7.7 bn
Africa”). Advanced economies have also fallen far debt: $3.5 bn
short of a 2009 pledge to mobilize $100 billion a year
for climate actions in developing countries. Source: Climate Policy Initiative.
It is important that resources allocated towards climate change do not crowd out those devoted to basic needs
and other development goals. Official development assistance, for instance, has been declining over the last two
decades, and despite a temporary surge during the COVID-19 pandemic, aid flows are likely to shrink further
over the near term. More support from advanced economies is needed to ensure that the essential development
needs of African countries are adequately financed, with the objective of fostering strong, resilient, and inclusive
growth. Furthermore, climate finance must come on top of current aid flows rather than replacing them.
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 13
Therefore, what can be done to mobilize the additional climate financing to the region?
 Unlock more concessional finance. Sub-Saharan African countries encounter challenges in accessing conces-
sional climate finance, in part because requirements vary greatly across financing providers. For example,
climate funds—a key channel for concessional financing—have the potential to be scaled up significantly to
help meet the region’s climate adaptation and mitigation needs. However, the numerous access require-
ments and project selection criteria for these funds present serious hurdles for countries in the region seeking
to access this financing. To help unlock concessional financing, development partners—including the IMF—
can support countries in building and strengthening capacity. Priority areas include governance and public
financial management, development of adequate data and climate strategies, formulation of legal and regu-
latory frameworks, and financial system reforms.
 Increase private climate finance. The private sector has the potential to mobilize significant climate finance
in the region as it does in the rest of the world. This can be done by developing the use of financing instru-
ments like green bonds or sustainability-linked bonds and attracting private institutional investors. Increasing
the attractiveness of private climate finance will require better data to support financial risk monitoring and
analysis on performance indicators, but also more transparency and disclosure.
 Join forces: leverage concessional finance to catalyze private finance. In many cases, the risk-adjusted returns
of climate projects in the region are insufficiently attractive to international or domestic investors. Concessional
finance in the form of guarantees, loan tenure extension, below market pricing and subordinated loans can
help reduce the risks associated with climate projects and raise their attractiveness to private investors. This
“crowding in” of private sector finance could increase the scale of climate infrastructure projects, although
private funding is a difficult and complex issue, where options and best practices are still being developed.
The IMF’s new Resilience and Sustainability Facility is an important new financing instrument that will help
sub-Saharan Africa address longer-term structural challenges, including those posed by climate change. It was
launched in 2022, and five countries are already benefiting from the facility, including one from sub-Saharan
Africa (Rwanda). The Resilience and Sustainability Facility provides financing to support both adaptation and
mitigation efforts, while also providing a framework of transparency, credibility, and stability that are essential in
incentivizing private sector investments in climate resilient infrastructure and renewable energy projects.
Conclusion
Policymakers in sub-Saharan Africa are looking at yet at another difficult year, facing tighter financing conditions
on top of the ongoing repercussions from a recent cascading series of shocks. Despite serious financing
constraints, there are still a few policy levers available to alleviate the situation. For instance, domestic revenue
mobilization offers a potential source of financing. Moreover, improving domestic legal and regulatory
frameworks and undertaking financial systems reforms would not only attract much needed climate finance but
also other types of private finance to the region that can help address basic needs and development goals in
addition to those arising from climate change. Above all, sub-Saharan Africa will require international assistance
in addressing the funding squeeze. The IMF also stands ready to support the region. As of March 2023, the
IMF has lending arrangements with 21 countries in the region and has received many program requests. The
disbursements associated with IMF programs, emergency financing facilities, and the special drawing rights
allocation represented $50 billion between 2020 and 2022.
APRIL 2023 • INTERNATIONAL MONETARY FUND
14 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
References
Global Center on Adaptation (GCA). 2021. State and Trends in Adaptation Report 2021. How Adaptation Can
Make Africa Safer, Greener and More Prosperous in a Warming World.
https://gca.org/wp-content/uploads/2022/08/GCA_STA_2021_Complete_website.pdf
International Energy Agency (IEA). 2022. “Africa Energy Outlook 2022.” World Energy Outlook Report.
International Energy Agency, Paris.
Selassie, Abebe Aemro. 2022. “The Return of Macroeconomic Imbalances: Adapting to Life on
the Edge.” Remarks at the 13th Andrew Crockett Lecture Governors’ Roundtable for African
Central Bankers, All Souls College, Oxford. https://www.imf.org/en/News/Articles/2022/06/27/
sp062722-13th-andrew-crockett-lecture-governors-roundtable-for-african-central-bankers.
Selassie, Abebe Aemro. 2023. Remarks at the 2023 Oxford Center for the Study of African Economies
Conference, St Catherine’s College, Oxford. https://www.imf.org/en/News/Articles/2023/03/20/
sp032023-abebe-selassie-2023-oxford-csae-conference.
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 15
Statistical Appendix
Unless otherwise noted, data and projections presented in this Regional Economic Outlook are IMF staff estimates
as of March 30, 2023, consistent with the projections underlying the April 2023 World Economic Outlook.
The data and projections cover 45 sub-Saharan African countries in the IMF’s African Department. Data defini-
tions follow established international statistical methodologies to the extent possible. However, in some cases,
data limitations limit comparability across countries.
Country Groupings
 Countries are aggregated into three (nonoverlapping) groups: oil exporters, other resource-intensive
countries, and non-resource-intensive countries (see table on page vi for the country groupings).
 The oil exporters are countries where net oil exports make up 30 percent or more of total exports.
 The other resource-intensive countries are those where nonrenewable natural resources represent
25 percent or more of total exports.
 The non-resource-intensive countries refer to those that are not classified as either oil exporters or other
resource-intensive countries.
 Countries are also aggregated into four (overlapping) groups: oil exporters, middle-income, low-income,
and countries in fragile and conflict-affected situations. (see table on page vi for the country groupings).
 The membership of these groups reflects the most recent data on per capita gross national income (averaged
over three years) and the World Bank, Classification of Fragile and Conflict-Affected Situations.
 The middle-income countries had per capita gross national income in the years 2019–21 of more than $1,085.00
(World Bank, using the Atlas method).
 The low-income countries had average per capita gross national income in the years 2019–21 equal to or lower
than $1,085.00 (World Bank, Atlas method).
 The countries in fragile and conflict-affected situations are classified based on the World Bank, Classification
of Fragile and Conflict-Affected Situations, FY2023.
 The membership of sub-Saharan African countries in the major regional cooperation bodies is shown on
page vi: CFA franc zone, comprising the West African Economic and Monetary Union (WAEMU) and CEMAC;
the Common Market for Eastern and Southern Africa (COMESA); the East Africa Community (EAC-5); the
Economic Community of West African States (ECOWAS); the Southern African Development Community
(SADC); and the Southern African Customs Union (SACU). EAC-5 aggregates include data for Rwanda and
Burundi, which joined the group only in 2007.
Methods of Aggregation
 In Tables SA1 and SA3, country group composites for real GDP growth and broad money are calculated as
the arithmetic average of data for individual countries, weighted by GDP valued at purchasing power parity
as a share of total group GDP. The source of purchasing power parity weights is the World Economic Outlook
(WEO) database.
 In Table SA1, country group composites for consumer prices are calculated as the geometric average of data
for individual countries, weighted by GDP valued at purchasing power parity as a share of total group GDP.
The source of purchasing power parity weights is the WEO database.
 In Tables SA2–SA4, country group composites, except for broad money, are calculated as the arithmetic
average of data for individual countries, weighted by GDP in US dollars at market exchange rates as a share
of total group GDP.
APRIL 2023 • INTERNATIONAL MONETARY FUND
16 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
List of Sources and Footnotes for Statistical Appendix Tables SA1-SA4
Tables SA1.,SA3.
Sources: IMF, Common Surveillance database; and IMF, April 2023, World Economic Outlook database.
1 In 2019 Zimbabwe authorities introduced the real-time gross settlement (RTGS) dollar, later renamed the
Zimbabwe dollar, and are in the process of redenominating their national accounts statistics. Current data
are subject to revision. The Zimbabwe dollar previously ceased circulating in 2009, and between 2009–19,
Zimbabwe operated under a multicurrency regime with the US dollar as the unit of account.
Note: “...” denotes data not available.
Table SA2.
Sources: IMF, Common Surveillance database; and IMF, April 2023, World Economic Outlook database.
1 For Zambia, government debt projections for 2022–24 are omitted due to ongoing debt restructuring.
2 In 2019 Zimbabwe authorities introduced the real-time gross settlement (RTGS) dollar, later renamed the
Zimbabwe dollar, and are in the process of redenominating their national accounts statistics. Current data
are subject to revision. The Zimbabwe dollar previously ceased circulating in 2009, and between 2009–19,
Zimbabwe operated under a multicurrency regime with the US dollar as the unit of account.
Note: “...” denotes data not available.
Table SA4.
Sources: IMF, Common Surveillance database; and IMF, April 2023, World Economic Outlook database.
1 As a member of the West African Economic and Monetary Union (WAEMU), see WAEMU aggregate for
reserves data.
2 As a member of the Central African Economic and Monetary Community (CEMAC), see CEMAC aggregate
for reserves data.
3 For Zambia, external debt projections for 2022–24 are omitted due to ongoing debt restructuring.
4 In 2019 Zimbabwe authorities introduced the real-time gross settlement (RTGS) dollar, later renamed the
Zimbabwe dollar, and are in the process of redenominating their national accounts statistics. Current data
are subject to revision. The Zimbabwe dollar previously ceased circulating in 2009, and between 2009–19,
Zimbabwe operated under a multicurrency regime with the US dollar as the unit of account.
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 17
Table SA1. Real GDP Growth and Consumer Prices
Real GDP Consumer Prices, Annual Average
(Annual percent change) (Annual percent change)
2011–19 2020 2021 2022 2023 2024 2011–19 2020 2021 2022 2023 2024
Angola 2.0 –5.6 1.1 2.8 3.5 3.7 16.3 22.3 25.8 21.4 11.7 10.8
Benin 5.1 3.8 7.2 6.0 6.0 5.9 1.2 3.0 1.7 1.5 3.0 2.0
Botswana 4.1 –8.7 11.8 6.4 3.7 4.3 4.6 1.9 6.7 12.2 6.5 5.2
Burkina Faso 5.7 1.9 6.9 2.5 4.9 5.9 1.0 1.9 3.9 14.1 1.5 2.3
Burundi 1.9 0.3 3.1 1.8 3.3 6.0 7.1 7.3 8.3 18.9 16.0 13.0
Cabo Verde 4.0 –14.8 7.0 10.5 4.4 5.4 1.1 0.6 1.9 7.9 4.5 2.0
Cameroon 4.4 0.5 3.6 3.4 4.3 4.4 1.9 2.5 2.3 5.3 5.9 4.7
Central African Republic –0.7 1.0 1.0 0.4 2.5 3.8 4.9 0.9 4.3 5.8 6.3 2.7
Chad 2.4 –2.1 –1.1 2.5 3.5 3.7 1.9 4.5 –0.8 5.3 3.4 3.0
Comoros 3.1 –0.2 2.1 2.4 3.0 3.6 1.8 0.8 –0.0 12.0 8.1 1.4
Congo, Democratic Republic of the 5.9 1.7 6.2 6.6 6.3 6.5 10.2 11.4 9.0 9.0 10.8 7.2
Congo, Republic of –0.5 –6.2 1.5 2.8 4.1 4.6 2.3 1.4 2.0 3.5 3.3 3.2
Côte d'Ivoire 6.5 1.7 7.0 6.7 6.2 6.6 1.5 2.4 4.2 5.2 3.7 1.8
Equatorial Guinea –2.7 –4.2 –3.2 1.6 –1.8 –8.2 2.5 4.8 –0.1 5.0 5.7 5.2
Eritrea 4.6 –0.5 2.9 2.6 2.8 2.9 2.6 5.6 6.6 7.4 6.4 4.1
Eswatini 2.5 –1.6 7.9 0.5 2.8 2.5 5.9 3.9 3.7 4.8 5.4 4.8
Ethiopia 9.5 6.1 6.3 6.4 6.1 6.4 14.4 20.4 26.8 33.9 31.4 23.5
Gabon 3.7 –1.9 1.5 2.8 3.0 3.1 2.3 1.7 1.1 4.3 3.4 2.6
The Gambia 2.5 0.6 4.3 4.4 5.6 6.3 6.3 5.9 7.4 11.5 11.3 8.7
Ghana 6.5 0.5 5.4 3.2 1.6 2.9 11.8 9.9 10.0 31.9 45.4 22.2
Guinea 6.2 4.9 4.3 4.3 5.6 5.7 11.4 10.6 12.6 10.5 8.1 7.5
Guinea-Bissau 3.9 1.5 6.4 3.5 4.5 5.0 1.3 1.5 3.3 7.9 5.0 3.0
Kenya 4.7 –0.3 7.5 5.4 5.3 5.4 7.4 5.3 6.1 7.6 7.8 5.6
Lesotho 1.5 –3.9 2.1 2.1 2.2 2.3 5.1 5.0 6.0 8.2 6.8 5.5
Liberia 2.8 –3.0 5.0 4.8 4.3 5.5 12.5 17.0 7.8 7.6 6.9 5.9
Madagascar 3.2 –7.1 5.7 4.2 4.2 4.8 7.0 4.2 5.8 8.2 9.5 8.8
Malawi 4.1 0.9 4.6 0.8 2.4 3.2 17.2 8.6 9.3 20.8 24.7 18.3
Mali 4.3 –1.2 3.1 3.7 5.0 5.1 1.1 0.5 3.8 10.1 5.0 2.8
Mauritius 3.7 –14.6 3.5 8.3 4.6 4.1 3.0 2.5 4.0 10.8 9.5 6.9
Mozambique 5.5 –1.2 2.3 4.1 5.0 8.2 7.0 3.1 5.7 9.8 7.4 6.5
Namibia 2.8 –8.0 2.7 3.8 2.8 2.6 5.2 2.2 3.6 6.1 5.0 4.6
Niger 5.9 3.5 1.4 11.1 6.1 13.0 0.7 2.9 3.8 4.2 2.8 2.5
Nigeria 3.0 –1.8 3.6 3.3 3.2 3.0 11.6 13.2 17.0 18.8 20.1 15.8
Rwanda 7.1 –3.4 10.9 6.8 6.2 7.5 3.9 7.7 0.8 13.9 8.2 5.0
São Tomé & Príncipe 4.0 3.0 1.9 0.9 2.0 2.5 8.1 9.8 8.1 18.0 17.9 7.3
Senegal 5.0 1.3 6.1 4.7 8.3 10.6 1.0 2.5 2.2 9.7 5.0 2.0
Seychelles 4.7 –7.7 7.9 8.8 3.9 3.9 3.0 1.2 9.8 2.7 3.1 3.7
Sierra Leone 5.0 –2.0 4.1 2.8 3.1 4.8 10.0 13.4 11.9 27.2 37.8 25.9
South Africa 1.6 –6.3 4.9 2.0 0.1 1.8 5.3 3.3 4.6 6.9 5.8 4.8
South Sudan –5.3 –6.5 5.3 6.6 5.6 4.6 98.6 24.0 30.2 17.6 27.8 10.0
Tanzania 6.7 4.8 4.9 4.7 5.2 6.2 7.3 3.3 3.7 4.4 4.9 4.3
Togo 5.7 1.8 5.3 5.4 5.5 5.5 1.4 1.8 4.5 7.6 5.3 2.9
Uganda 5.3 –1.3 6.0 4.9 5.7 5.7 6.8 2.8 2.2 6.8 7.6 6.4
Zambia 4.3 –2.8 4.6 3.4 4.0 4.1 9.0 15.7 22.0 11.0 8.9 7.7
Zimbabwe1 4.6 –7.8 8.5 3.0 2.5 2.6 30.2 557.2 98.5 193.4 172.2 134.6
Sub-Saharan Africa 3.7 –1.7 4.8 3.9 3.6 4.2 8.3 10.1 11.0 14.5 14.0 10.5
Median 4.4 –1.2 4.6 3.7 4.2 4.6 4.5 3.9 4.6 8.2 6.8 5.2
Excluding Nigeria and South Africa 5.0 0.0 5.2 4.8 4.8 5.4 8.0 11.1 10.7 15.2 14.1 10.1
Oil-exporting countries 2.7 –2.3 3.0 3.2 3.3 3.1 11.2 13.0 15.9 17.2 16.8 13.4
Excluding Nigeria 2.0 –3.6 1.5 2.9 3.4 3.3 10.2 12.3 13.2 13.0 8.5 7.4
Oil-importing countries 4.4 –1.3 5.7 4.3 3.7 4.7 6.7 8.6 8.5 13.1 12.5 9.0
Excluding South Africa 5.8 0.8 6.0 5.1 5.1 5.8 7.5 10.9 10.2 15.6 15.2 10.6
Middle-income countries 3.1 –2.9 4.5 3.4 2.9 3.4 8.2 8.5 10.5 13.1 13.0 9.6
Excluding Nigeria and South Africa 4.2 –1.7 5.0 4.4 4.3 4.7 7.4 7.9 9.1 12.5 11.7 7.6
Low-income countries 6.0 1.9 5.4 5.1 5.4 6.1 8.8 14.8 12.5 18.2 16.7 12.9
Excluding low-income countries in fragile
and conflict-affected situations 5.6 1.0 5.6 4.5 5.1 5.7 7.8 4.9 4.8 8.2 8.5 6.9
Countries in fragile and conflict-affected
situations 4.1 –0.2 4.2 4.1 4.1 4.4 10.3 15.6 16.4 20.3 20.0 15.5
CFA franc zone 4.4 0.6 4.5 4.8 5.2 5.9 1.6 2.4 2.8 6.4 4.1 2.7
CEMAC 2.4 –1.4 1.7 2.9 3.3 2.9 2.2 2.7 1.5 4.9 4.9 4.0
WAEMU 5.7 1.7 5.9 5.7 6.1 7.4 1.2 2.2 3.5 7.1 3.7 2.1
COMESA (SSA members) 5.8 0.5 6.5 5.4 5.3 5.6 9.4 17.1 14.6 19.4 18.5 14.1
EAC-5 5.5 0.9 6.6 5.1 5.4 5.8 7.1 4.4 4.4 7.0 7.0 5.4
ECOWAS 4.0 –0.6 4.4 3.9 3.8 4.2 9.3 10.2 12.7 17.0 17.9 12.6
SACU 1.8 –6.4 5.2 2.3 0.4 2.0 5.2 3.2 4.6 7.1 5.8 4.8
SADC 2.8 –4.4 4.6 3.2 2.3 3.4 7.7 10.7 9.6 11.5 9.6 8.0
See sources on page 16.
APRIL 2023 • INTERNATIONAL MONETARY FUND
18 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Table SA2. Overall Fiscal Balance, Including Grants and Government Debt
Overall Fiscal Balance, Including Grants Government Debt
(Percent of GDP) (Percent of GDP)
2011–19 2020 2021 2022 2023 2024 2011–19 2020 2021 2022 2023 2024
Angola –0.5 –1.9 3.8 1.6 -0.2 -1.9 59.8 138.9 86.9 67.0 63.3 59.2
Benin –2.4 –4.7 –5.7 –5.6 -4.3 -2.9 30.1 46.1 50.3 52.4 52.8 51.6
Botswana –0.9 –10.9 –2.4 –2.0 -2.7 -1.5 17.6 18.7 19.0 19.9 20.6 19.3
Burkina Faso –3.3 –5.1 –7.4 –10.4 -7.8 -6.7 30.3 44.9 48.2 54.3 58.0 60.2
Burundi –5.1 –6.3 –5.2 –12.1 -4.6 -2.7 45.1 66.0 66.6 68.3 69.5 61.0
Cabo Verde –5.5 –9.1 –7.3 –4.5 -5.0 -3.6 111.0 145.1 142.9 127.4 120.2 117.9
Cameroon –3.5 –3.2 –3.0 –1.8 -0.8 -0.6 27.6 44.9 46.8 46.4 42.8 40.4
Central African Republic –1.3 –3.4 –6.0 –5.6 -3.0 -2.1 47.4 43.4 47.6 50.7 49.1 48.5
Chad –0.9 2.1 –1.6 5.1 7.0 4.5 41.1 54.1 55.9 50.4 43.7 40.1
Comoros 0.5 –0.5 –2.8 –3.7 -6.4 -5.6 18.1 24.0 25.4 29.1 32.5 35.7
Congo, Democratic Republic of the 0.1 –1.4 –0.9 –1.6 -1.5 -2.5 18.0 16.7 16.3 14.6 11.0 9.0
Congo, Republic of –2.1 –1.2 1.8 6.6 4.8 5.1 62.3 112.1 107.9 99.6 96.5 89.2
Côte d'Ivoire –2.4 –5.4 –4.8 –6.7 -5.1 -4.0 32.4 46.3 50.9 56.8 63.3 60.6
Equatorial Guinea –5.0 –1.7 2.6 4.7 3.3 1.7 25.2 48.4 42.6 27.1 26.4 29.5
Eritrea –2.9 –4.4 –4.1 –1.3 -0.1 0.6 173.6 179.7 175.4 163.8 146.3 135.3
Eswatini –4.5 –4.5 –4.6 –5.7 0.7 -0.8 22.5 41.2 41.5 45.4 39.3 37.2
Ethiopia –2.3 –2.8 –2.8 –4.2 -3.5 -3.0 49.5 53.9 53.8 46.4 37.6 33.3
Gabon 0.5 –2.2 –1.9 1.8 0.9 0.3 44.5 78.3 65.8 55.1 60.3 58.2
The Gambia –4.3 –2.2 –4.6 –4.8 -2.7 -2.1 70.2 85.9 83.5 84.0 73.0 68.6
Ghana –6.6 –17.4 –12.1 –9.9 -7.3 -8.4 49.6 72.3 79.6 88.8 98.7 92.8
Guinea 0.6 –3.1 –1.7 –0.7 -2.3 -2.4 40.2 47.5 40.6 33.4 30.0 30.1
Guinea-Bissau –2.9 –9.6 –5.6 –5.5 -3.8 -3.2 55.6 78.2 78.9 79.5 76.5 74.7
Kenya –6.2 –8.1 –7.1 –6.0 -5.2 -4.4 46.7 67.8 67.0 67.9 66.6 65.4
Lesotho –2.9 0.3 –4.4 –3.4 2.5 8.4 41.8 60.0 56.4 57.9 58.5 57.3
Liberia –3.9 –3.8 –2.4 –6.9 -4.9 -3.9 28.7 58.7 53.3 55.4 57.1 56.1
Madagascar –2.1 –4.0 –2.8 –6.8 -3.0 -3.3 38.1 51.2 52.3 57.0 53.1 52.0
Malawi –3.8 –8.2 –8.6 –10.4 -7.8 -8.0 35.5 54.8 61.6 70.1 72.2 69.4
Mali –2.7 –5.4 –4.8 –4.8 -4.8 -4.3 31.5 46.9 50.7 53.2 54.1 54.9
Mauritius –3.3 –10.4 –4.0 –3.2 -4.2 -3.6 62.2 94.6 88.4 80.9 78.1 77.1
Mozambique –4.4 –5.4 –3.6 –5.2 -4.8 -3.1 78.9 120.0 107.2 104.5 102.8 103.1
Namibia –6.1 –8.1 –8.8 –7.3 -4.1 -2.7 38.6 66.6 72.0 71.3 68.5 66.8
Niger –3.7 –4.8 –5.9 –6.9 -5.3 -4.1 28.2 45.0 51.3 51.1 52.5 49.4
Nigeria –3.1 –5.6 –6.0 –5.5 -5.3 -5.4 21.9 34.5 36.5 38.0 38.8 39.0
Rwanda –2.6 –9.5 –7.0 –6.5 -5.4 -6.1 33.0 65.6 66.6 64.4 67.1 71.1
São Tomé & Príncipe –4.7 5.9 1.5 8.1 2.7 2.3 81.3 81.4 70.6 58.1 54.8 54.2
Senegal –3.9 –6.4 –6.3 –6.1 -4.9 -4.0 47.2 69.2 73.2 75.0 73.1 69.9
Seychelles 1.5 –16.3 –5.5 –1.0 -2.0 -1.8 67.0 84.8 72.9 63.4 62.5 60.0
Sierra Leone –5.1 –5.8 –7.3 –10.9 -6.2 -2.9 51.5 76.3 79.3 98.8 92.2 84.9
South Africa –4.0 –9.6 –5.6 –4.5 -5.9 -6.1 45.0 69.0 69.0 71.0 72.3 74.0
South Sudan –5.7 –5.6 –9.4 0.9 5.8 7.0 53.0 49.9 58.5 39.6 48.4 46.1
Tanzania –2.7 –2.5 –3.4 –3.3 -2.9 -2.6 36.3 39.8 42.1 41.6 40.1 38.5
Togo –3.9 –6.9 –4.6 –7.3 -6.1 -5.3 48.8 60.3 63.7 68.0 68.5 69.0
Uganda –3.0 –7.5 –7.5 –5.8 -4.1 -3.3 27.8 46.3 50.6 50.8 50.2 49.2
Zambia1 –6.3 –13.8 –8.1 –7.9 -6.3 -6.7 50.9 140.2 110.8 … … …
Zimbabwe2 –3.4 0.8 –2.2 –2.1 -3.0 -2.2 51.8 84.4 59.8 92.8 102.3 100.0
Sub-Saharan Africa –3.3 –6.4 –5.0 –4.4 -4.3 -4.2 37.6 57.1 56.6 56.5 55.5 53.9
Median –3.1 –5.1 –4.6 –4.8 -4.1 -2.9 41.4 60.0 59.8 57.9 60.3 59.2
Excluding Nigeria and South Africa –3.1 –5.7 –4.4 –4.0 -3.3 -3.1 42.6 63.3 60.1 59.2 57.0 53.9
Oil-exporting countries –2.6 –4.7 –4.1 –3.1 -3.4 -3.8 30.4 48.8 46.3 45.1 44.5 43.6
Excluding Nigeria –1.7 –2.1 0.5 1.6 0.8 -0.3 48.7 89.9 70.1 59.3 56.8 53.8
Oil-importing countries –3.8 –7.4 –5.5 –5.1 -4.8 -4.5 42.7 61.4 61.6 62.9 61.5 59.6
Excluding South Africa –3.6 –6.4 –5.4 –5.4 -4.3 -3.8 41.2 58.0 58.0 59.1 57.1 53.9
Middle-income countries –3.5 –7.4 –5.4 –4.5 -4.6 -4.8 37.2 59.1 58.6 58.7 58.8 57.9
Excluding Nigeria and South Africa –3.5 –7.6 –4.8 –3.8 -3.3 -3.3 45.1 74.3 68.4 66.7 66.6 63.7
Low-income countries –2.6 –3.6 –3.8 –4.2 -3.3 -3.0 39.4 51.2 50.5 50.5 46.9 43.8
Excluding low-income countries in fragile
and conflict-affected situations –2.7 –4.9 –4.9 –4.9 -3.7 -3.4 35.5 48.0 50.0 50.1 48.3 47.0
Countries in fragile and conflict-affected
situations –2.8 –4.4 –4.7 –4.4 -4.1 -4.0 28.8 42.7 43.4 44.1 42.6 41.0
CFA franc zone –2.7 –4.3 –4.0 –3.6 -2.8 -2.4 35.3 53.9 56.0 56.1 57.6 56.0
CEMAC –2.5 –2.0 –1.5 1.5 1.5 1.0 36.8 59.9 58.1 51.9 50.3 48.3
WAEMU –3.0 –5.5 –5.5 –6.7 -5.3 -4.3 34.7 50.5 54.8 58.7 61.7 60.1
COMESA (SSA members) –3.5 –5.4 –4.7 –4.9 -3.9 -3.6 42.1 60.4 57.4 57.6 52.7 48.9
EAC-5 –4.3 –6.3 –6.1 –5.3 -4.3 -3.7 39.2 55.5 56.7 56.7 55.3 53.8
ECOWAS –3.3 –6.7 –6.5 –6.1 -5.4 -5.2 27.7 43.2 46.6 48.4 49.8 48.7
SACU –4.0 –9.5 –5.5 –4.5 -5.6 -5.7 43.5 66.5 66.7 68.5 69.4 70.8
SADC –3.2 –7.0 –3.9 –3.4 -4.1 -4.3 45.1 70.4 64.4 64.5 63.4 62.4
See sources on page 16.
INTERNATIONAL MONETARY FUND • APRIL 2023
THE BIG FUNDING SQUEEZE 19
Table SA3. Broad Money and External Current Account, Including Grants
Broad Money External Current Account, Including Grants
(Percent of GDP) (Percent of GDP)
2011–19 2020 2021 2022 2023 2024 2011–19 2020 2021 2022 2023 2024
Angola 34.6 38.4 24.4 19.5 19.3 19.2 3.0 1.5 11.2 11.0 6.2 3.1
Benin 28.1 30.5 32.6 32.6 32.6 32.6 –4.9 –1.7 –4.2 –5.7 –5.8 –5.0
Botswana 44.7 52.5 45.3 44.1 46.2 45.9 2.0 –8.7 –0.5 3.1 3.3 5.4
Burkina Faso 32.3 43.6 49.0 41.9 43.1 43.6 –5.1 4.1 –0.4 –5.2 –3.6 –2.7
Burundi 27.0 46.3 50.6 56.3 57.8 59.7 –14.1 –10.3 –12.4 –15.7 –15.6 –13.2
Cabo Verde 92.9 114.3 107.1 99.3 98.4 98.8 –6.9 –15.0 –11.3 –7.5 –5.0 –4.0
Cameroon 21.7 26.6 29.1 30.7 30.2 30.5 –3.3 –3.7 –4.0 –1.6 –2.8 –3.0
Central African Republic 24.0 30.3 33.3 31.9 29.6 28.9 –7.1 –8.2 –11.0 –13.3 –8.8 –7.4
Chad 14.6 20.8 23.3 21.3 21.2 20.4 –7.6 –7.3 –4.5 2.8 –1.4 –4.9
Comoros 25.1 31.2 36.7 36.7 35.0 33.5 –3.1 –1.7 0.8 –4.6 –7.3 –6.4
Congo, Democratic Republic of the 11.5 20.2 22.2 21.1 22.1 23.3 –4.4 –2.2 –0.9 –2.2 –3.9 –3.0
Congo, Republic of 27.4 35.8 34.0 31.8 36.8 38.3 –3.2 13.5 14.6 21.2 4.8 0.1
Côte d'Ivoire 10.9 13.5 15.2 14.5 13.6 13.3 –0.3 –3.1 –4.0 –6.5 –5.7 –5.3
Equatorial Guinea 13.2 17.1 14.7 10.4 10.4 10.4 –7.6 –4.2 –3.6 0.0 –2.1 –5.8
Eritrea 207.6 232.1 232.1 232.1 232.1 232.1 14.9 14.2 14.1 12.9 14.1 12.4
Eswatini 26.8 32.3 30.3 29.8 28.9 28.5 6.0 7.1 2.7 –1.7 3.4 3.5
Ethiopia 29.2 30.8 31.1 27.9 26.7 26.3 –7.1 –4.6 –3.2 –4.3 –3.4 –2.6
Gabon 23.7 27.9 23.1 21.9 24.6 26.6 2.4 –6.9 –4.5 1.2 –0.1 –1.1
The Gambia 38.6 56.0 59.5 55.3 52.6 51.2 –7.6 –3.0 –3.8 –15.0 –13.8 –10.5
Ghana 24.1 30.8 29.5 29.3 27.2 26.6 –5.5 –3.8 –3.7 –2.3 –2.9 –2.0
Guinea 24.2 27.6 25.7 27.9 24.4 24.9 –16.3 –16.1 –2.1 –6.2 –5.2 –4.6
Guinea-Bissau 38.5 45.6 50.6 48.4 47.1 46.7 –2.4 –2.6 –0.8 –5.9 –4.9 –4.7
Kenya 36.8 37.2 35.0 33.2 32.0 31.8 –6.9 –4.8 –5.2 –4.7 –5.3 –5.3
Lesotho 34.2 40.3 37.2 34.8 34.2 34.2 –6.1 –1.0 –4.4 –4.4 0.6 1.0
Liberia 20.2 25.5 24.6 25.0 25.1 25.2 –20.1 –16.4 –17.9 –15.7 –17.0 –18.3
Madagascar 23.4 28.7 28.6 34.3 35.0 36.0 –2.7 –5.4 –5.0 –5.6 –5.7 –5.1
Malawi 17.2 17.5 20.1 23.6 24.7 24.9 –10.2 –13.8 –12.6 –3.6 –12.2 –13.3
Mali 27.1 36.1 39.4 40.4 40.4 40.4 –5.2 –2.2 –8.2 –6.9 –6.2 –5.5
Mauritius 104.3 156.8 160.0 142.8 130.8 131.0 –5.8 –8.8 –13.3 –13.5 –8.2 –6.8
Mozambique 33.5 43.3 43.6 43.7 43.5 42.2 –31.1 –27.3 –22.8 –36.0 –13.3 –34.6
Namibia 58.3 71.6 71.4 70.4 69.7 69.6 –8.1 2.6 –9.8 –13.5 –5.3 –3.7
Niger 17.5 19.2 20.1 19.7 20.8 20.8 –12.6 –13.2 –14.1 –15.5 –12.8 –8.1
Nigeria 24.3 25.2 25.2 25.8 27.3 28.7 1.2 –3.7 –0.4 –0.7 –0.6 –0.5
Rwanda 22.4 29.4 30.4 30.4 29.9 30.5 –10.5 –12.1 –10.9 –11.6 –13.2 –12.0
São Tomé & Príncipe 36.6 32.5 29.4 27.9 26.3 26.3 –15.6 –11.0 –11.2 –13.8 –11.8 –11.3
Senegal 34.6 45.3 47.8 49.0 49.7 50.0 –7.2 –10.9 –13.6 –16.0 –10.4 –4.6
Seychelles 66.9 113.3 108.2 101.6 101.8 100.9 –15.7 –13.5 –10.4 –7.3 –9.2 –10.0
Sierra Leone 22.2 29.5 32.4 33.9 30.0 28.0 –21.9 –7.1 –8.7 –10.3 –6.1 –5.1
South Africa 66.4 74.1 70.3 71.8 71.9 72.7 –3.5 2.0 3.7 –0.5 –2.3 –2.6
South Sudan 20.7 18.4 14.9 9.6 10.2 10.3 4.5 –19.2 –9.5 6.7 6.3 5.7
Tanzania 22.1 20.9 21.3 21.0 20.9 20.8 –7.0 –1.9 –3.4 –4.6 –4.0 –3.3
Togo 37.6 45.4 47.5 49.1 50.4 51.0 –5.1 –0.3 –0.9 –2.8 –4.0 –3.7
Uganda 17.4 22.4 21.8 20.7 20.6 20.7 –5.7 –9.5 –8.3 –8.1 –10.9 –11.9
Zambia 21.0 31.3 24.3 24.3 24.2 23.9 0.3 10.6 9.2 2.4 3.8 4.5
Zimbabwe1 24.1 14.8 14.9 16.0 13.5 13.9 –7.9 2.5 1.0 0.8 0.4 0.8
Sub-Saharan Africa 35.3 38.6 37.2 36.7 36.6 36.9 –2.7 –2.8 –1.1 –2.0 –2.6 –2.7
Median 26.4 31.2 31.1 31.8 30.0 30.5 –5.5 –4.2 –4.2 –4.7 –5.0 –4.6
Excluding Nigeria and South Africa 28.1 32.6 31.4 30.0 29.4 29.4 –4.5 –4.1 –3.3 –3.1 –3.5 –3.7
Oil-exporting countries 25.3 27.2 25.2 24.9 26.1 27.1 0.9 –3.2 0.7 1.8 0.5 –0.2
Excluding Nigeria 27.5 32.0 25.2 22.5 22.8 23.1 0.2 –1.7 3.2 7.0 2.8 0.4
Oil-importing countries 41.6 44.9 43.6 43.0 42.1 41.9 –5.2 –2.6 –1.9 –4.1 –4.2 –4.1
Excluding South Africa 28.2 32.7 32.7 31.6 30.8 30.7 –6.4 –4.6 –4.7 –5.7 –5.0 –4.7
Middle-income countries 38.4 42.1 39.9 39.7 39.7 40.2 –1.5 –1.8 0.2 –0.6 –1.5 –1.6
Excluding Nigeria and South Africa 30.8 36.1 32.9 31.3 30.6 30.6 –2.1 –2.8 –1.9 –0.7 –1.8 –2.0
Low-income countries 24.6 28.7 29.6 28.5 28.2 28.2 –8.0 –5.5 –4.9 –5.8 –5.3 –5.5
Excluding low-income countries in fragile
and conflict-affected situations 21.6 24.6 24.8 25.5 25.1 25.3 –8.0 –6.8 –5.9 –6.4 –7.2 –6.9
Countries in fragile and conflict-affected
situations 25.1 27.7 28.3 27.9 28.7 29.5 –1.7 –3.8 –1.8 –2.2 –2.0 –2.2
CFA franc zone 22.0 27.7 29.5 28.8 29.1 29.4 –3.7 –3.6 –4.7 –4.4 –4.8 –4.3
CEMAC 20.5 25.9 26.4 26.0 26.8 27.5 –3.3 –2.8 –2.1 2.1 –1.4 –2.9
WAEMU 23.0 28.7 31.1 30.1 30.2 30.2 –4.3 –4.0 –6.2 –8.4 –6.8 –5.1
COMESA (SSA members) 30.1 34.5 33.8 32.2 31.2 31.2 –5.7 –4.1 –3.7 –4.2 –4.6 –4.2
EAC-5 27.4 29.2 28.4 27.4 26.8 26.8 –7.0 –5.1 –5.6 –5.8 –6.4 –6.3
ECOWAS 24.2 27.0 27.4 27.6 28.2 29.0 –1.0 –4.2 –2.4 –3.0 –2.6 –2.0
SACU 64.6 72.4 68.5 69.7 69.9 70.5 –3.4 1.6 3.1 –0.7 –2.1 –2.2
SADC 49.6 54.7 50.8 50.6 50.0 50.1 –3.4 –0.1 1.9 –0.4 –1.6 –2.4
See sources on page 16.
APRIL 2023 • INTERNATIONAL MONETARY FUND
20 REGIONAL ECONOMIC OUTLOOK—Sub-Saharan Africa
Table SA4. External Debt, Official Debt, Debtor Based and Reserves
External Debt, Official Debt, Debtor Based Reserves
(Percent of GDP) (Months of imports of goods and services)
2011–19 2020 2021 2022 2023 2024 2011–19 2020 2021 2022 2023 2024
Angola 33.6 90.9 68.9 44.2 46.2 45.9 9.3 9.5 7.1 6.8 6.5 6.8
Benin1 15.6 30.3 35.2 38.3 38.7 38.1 … ... ... ... ... ...
Botswana 15.4 12.5 10.1 10.4 10.9 9.5 11.4 6.5 6.3 6.6 6.8 7.2
Burkina Faso1 20.2 24.4 24.0 25.4 24.7 23.9 ... ... ... ... ... ...
Burundi 19.5 17.5 19.9 19.3 27.6 28.8 2.5 1.0 2.3 1.5 2.2 3.4
Cabo Verde 85.5 130.3 114.9 108.1 101.1 98.2 5.7 6.9 6.8 6.2 6.2 6.5
Cameroon2 18.4 32.5 30.3 32.9 30.5 29.3 ... ... ... ... ... ...
Central African Republic2 29.2 36.3 32.8 34.4 31.8 30.7 ... ... ... ... ... ...
Chad2 24.2 28.2 24.4 23.0 21.8 21.7 ... ... ... ... ... ...
Comoros 17.2 23.1 24.5 28.4 31.6 34.8 7.1 7.9 9.4 7.4 7.5 7.7
Congo, Democratic Republic of the 14.1 13.8 14.8 13.4 10.1 8.3 1.0 0.6 0.8 1.1 1.5 1.9
Congo, Republic of 2 25.4 31.9 26.6 27.0 27.1 24.9 ... ... ... ... ... ...
Côte d'Ivoire1 19.6 33.6 30.8 36.1 36.7 35.9 ... ... ... ... ... ...
Equatorial Guinea2 8.8 16.3 12.2 8.4 9.0 9.0 ... ... ... ... ... ...
Eritrea 62.2 57.3 55.2 51.2 45.8 42.8 4.7 4.0 4.1 4.5 5.0 5.3
Eswatini 8.8 15.2 15.2 18.6 19.3 19.8 3.7 3.1 3.1 2.4 2.4 2.4
Ethiopia 25.4 28.8 29.1 23.0 18.2 15.8 2.0 2.0 1.5 0.7 0.6 0.5
Gabon2 29.8 49.0 36.1 31.1 33.1 32.4 ... ... ... ... ... ...
The Gambia 37.5 49.4 47.5 48.3 44.7 42.0 3.6 5.8 7.0 5.1 4.5 4.2
Ghana 26.3 39.2 38.2 42.7 51.8 54.1 2.8 2.5 2.4 0.6 0.8 1.7
Guinea 23.2 27.0 24.8 21.9 19.5 20.4 2.2 1.9 2.5 2.5 2.5 2.5
Guinea-Bissau1 30.0 43.9 38.2 40.0 36.7 34.9 ... ... ... ... ... ...
Kenya 23.6 32.2 32.3 31.9 33.5 33.9 4.6 4.5 4.7 3.7 3.0 3.3
Lesotho 35.3 46.6 41.0 42.5 44.6 44.5 4.8 4.1 5.1 4.0 4.5 5.6
Liberia 18.4 41.1 37.2 37.2 38.1 38.1 2.1 2.2 4.1 3.5 3.5 3.5
Madagascar 23.4 36.4 37.2 38.9 39.9 39.9 3.4 4.8 4.5 3.8 3.7 3.6
Malawi 19.4 31.8 30.9 29.9 33.2 34.4 2.5 0.9 0.4 1.1 1.3 2.8
Mali1 22.8 31.5 27.2 26.7 25.1 23.9 ... ... ... ... ... ...
Mauritius 13.3 20.2 23.3 23.5 24.5 23.8 8.4 14.4 12.5 12.1 10.0 9.8
Mozambique 63.8 90.7 85.1 76.1 72.7 73.6 3.5 4.7 2.6 2.9 2.1 2.1
Namibia 12.6 21.3 15.7 17.2 16.9 15.5 3.4 4.1 4.5 4.6 4.7 4.8
Niger1 18.4 33.0 31.5 33.0 32.7 30.9 ... ... ... ... ... ...
Nigeria 3.7 8.0 9.1 9.4 9.4 9.8 6.1 6.6 6.0 5.7 6.0 6.3
Rwanda 28.0 54.7 53.4 51.5 55.7 61.7 3.9 5.4 4.4 3.7 3.7 4.1
São Tomé & Príncipe 75.1 64.9 58.5 58.1 54.8 54.2 3.8 4.5 4.3 3.8 3.7 3.8
Senegal1 32.9 48.9 45.8 47.5 43.5 39.9 ... ... ... ... ... ...
Seychelles 35.4 38.8 39.5 31.1 33.7 34.1 3.6 3.7 3.7 3.6 3.5 3.6
Sierra Leone 31.6 48.3 48.3 51.0 56.8 53.0 3.2 4.6 6.1 4.6 3.7 3.3
South Africa 15.0 23.4 18.6 20.7 22.0 22.1 5.8 6.4 5.5 5.2 4.8 4.4
South Sudan ... ... ... ... ... ... 1.7 0.1 0.9 0.4 0.5 0.9
Tanzania 25.9 28.4 28.8 27.4 26.3 25.0 4.8 5.3 4.3 3.9 3.8 4.0
Togo1 13.4 28.3 25.4 27.5 26.2 26.3 ... ... ... ... ... ...
Uganda 16.9 29.8 27.7 26.8 28.9 29.1 4.6 4.3 4.6 3.4 3.4 3.8
Zambia3 26.4 66.6 53.9 … … … 2.7 1.3 2.9 3.1 3.3 4.2
Zimbabwe4 31.7 26.6 19.8 21.5 23.6 26.3 0.5 0.1 1.3 0.4 0.2 0.2
Sub-Saharan Africa 16.6 26.5 24.6 24.2 24.3 23.8 5.2 5.0 4.6 4.1 4.0 4.1
Median 22.8 32.1 30.8 31.1 32.3 31.0 3.8 4.3 4.3 3.7 3.7 3.8
Excluding Nigeria and South Africa 24.4 36.6 33.9 31.8 31.4 30.4 4.3 3.7 3.6 3.1 2.9 3.1
Oil-exporting countries 11.2 20.1 19.5 18.0 17.9 17.8 6.3 6.4 5.6 5.5 5.8 6.1
Excluding Nigeria 27.6 55.8 45.4 36.1 36.8 36.5 6.7 5.6 4.8 5.1 5.2 5.5
Oil-importing countries 20.3 29.9 27.2 27.6 27.7 27.1 4.4 4.3 4.0 3.4 3.1 3.1
Excluding South Africa 23.7 32.9 31.4 30.7 30.1 29.0 3.5 3.3 3.3 2.5 2.4 2.6
Middle-income countries 14.7 25.2 23.2 23.2 23.9 23.7 5.8 5.8 5.2 4.9 4.8 5.0
Excluding Nigeria and South Africa 24.6 42.0 37.9 35.7 37.1 36.5 5.4 4.6 4.3 4.0 3.8 4.2
Low-income countries 24.5 30.5 29.1 27.1 25.2 24.1 2.8 2.8 2.7 2.0 1.9 2.0
Excluding low-income countries in fragile
and conflict-affected situations 22.5 32.0 31.1 30.1 30.2 30.0 3.9 4.2 3.9 3.4 3.3 3.6
Countries in fragile and conflict-affected
situations 11.1 17.2 17.4 16.7 15.7 15.3 4.8 4.8 4.4 4.0 4.0 4.2
CFA franc zone 21.0 33.7 30.8 32.2 31.8 30.9 4.6 4.6 4.4 4.1 3.9 3.9
CEMAC 20.9 33.0 28.2 27.1 26.8 26.2 4.2 3.2 3.0 4.2 4.3 4.5
WAEMU 21.3 34.1 32.3 35.3 34.6 33.4 4.9 5.4 5.2 4.1 3.6 3.7
COMESA (SSA members) 22.2 30.2 29.1 26.7 25.4 24.0 3.2 3.1 3.1 2.5 2.2 2.4
EAC-5 23.1 31.5 31.3 30.4 31.4 31.3 4.6 4.7 4.5 3.7 3.4 3.7
ECOWAS 9.9 18.6 19.2 19.7 20.1 20.0 5.1 5.2 4.9 4.3 4.4 4.8
SACU 14.9 23.0 18.3 20.3 21.4 21.4 5.9 6.3 5.4 5.3 4.9 4.6
SADC 20.4 32.2 27.0 26.4 26.9 26.5 5.7 5.6 4.8 4.7 4.4 4.4
See sources on page 16.
INTERNATIONAL MONETARY FUND • APRIL 2023