Growth in sub-Saharan Africa is expected to slow to 3.6 percent in 2023, as a “big funding squeeze”, tied to the drying up of aid and access to private finance, hits the region, announced the IMF April 13, 2023, in a press briefing.
Without intervention, the lack of funding may compel countries to decrease fiscal resources for crucial development such as health, education, and infrastructure, hindering the region's ability to reach its full potential. The Director of the IMF's African Department, Abebe Aemro Selassie, revealed that economic growth in the region is expected to decelerate from 3.9 percent to 3.6 percent in 2023, primarily due to the significant funding squeeze brought about by the depletion of aid and private finance access. Sub-Saharan African countries have a considerably low median tax ratio, only 13 percent of GDP in 2022, in contrast to 18 percent in other emerging economies and developing countries and 27 percent in advanced economies. Selassie stressed the need for reforms to improve economic resilience and to shield domestic economies from external factors. The IMF has provided about $50 billion in financing to the region since the start of the pandemic and is committed to collaborating with each country to implement tailored policies and reforms that are appropriate for their specific needs.