WASHINGTON - Sub-Saharan Africa, hobbled by soaring inflation and higher borrowing costs as a result of the Ukraine war, will suffer its second consecutive year of slowing growth this year, the International Monetary Fund says.
Half of Africa’s countries are now burdened with double-digit inflation and most have lost their access to bond markets, while foreign aid to Africa has fallen into decline, the IMF said in a report on Friday.
“A funding squeeze has hit the region hard,” the IMF said. “Public debt and inflation are at levels not seen in decades.” The rising cost of living is hurting the most vulnerable Africans and adding to social pressures in many countries, at a time when their governments are struggling with the escalating cost of public debt and a cut in their access to credit markets, it said.
“No country has been able to issue a Eurobond since spring 2022,” the report said. “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.”
