IMF to Africa: Reform Faster, Unite to Weather Shocks and Seize AI Opportunity

The International Monetary Fund has called on African countries to speed up reforms, maintain sound macroeconomic policies and deepen regional integration as geoeconomic fragmentation and a global race for capital raise the risk of shocks. IMF Managing Director Kristalina Georgieva told CNBC Africa that the continent’s best chance lies in presenting itself as a unified investment destination, with more cross-border infrastructure and regional value chains.

“I see also a lot that Africa can do together,” Georgieva said from New York, where she is attending the 81st United Nations General Assembly. “Collaborating and presenting not one story of one country, but that of a whole continent is the future engine of growth for the world.”

Growth forecasts trimmed

The IMF projects sub-Saharan Africa’s economy to grow by 4.3% in 2026, down slightly from an estimated 4.5% in 2025. It cited higher fuel, fertilizer and food prices, tighter global financial conditions and geopolitical tensions as factors weighing on activity.

The World Bank sees growth at 4.1% in 2026, unchanged from 2025, but revised lower because of Middle East-related shocks, rising debt-service costs and persistent structural constraints. Both institutions say domestic demand and reform efforts are supporting growth. Yet Africa must accelerate structural reforms, strengthen macroeconomic stability and attract private investment to turn growth into jobs, poverty reduction and long-term economic transformation.

Reform examples and AI opportunity

Georgieva pointed to Côte d’Ivoire, Rwanda, Ghana, Zambia and Ethiopia as examples of countries pursuing difficult but necessary reforms that could lay the foundation for stronger growth and improved living standards.

She said Africa is uniquely positioned to benefit from the rise of artificial intelligence. The continent has a young and growing population, plus the world’s highest concentration of critical minerals and natural resources that underpin digital infrastructure, energy systems and emerging technologies.

Capturing those benefits will require more than favourable demographics and resources. Georgieva said attracting investment remains essential. Governments must strengthen governance, improve transparency and continue fighting corruption to create a more attractive environment for domestic and foreign capital.

Inflation, debt and stability risks

Georgieva said the global economy has proven resilient in recent years. But energy supply disruptions linked to conflict in the Middle East continue to pose inflation risks. Massive investment flows into artificial intelligence are also increasing demand for capital and keeping financing conditions tight.

For Africa, the implications are significant. Many countries are still rebuilding fiscal space after years of shocks and remain burdened by high debt levels. Elevated global interest rates mean governments face higher borrowing costs, limiting resources available for critical investments in healthcare, education and infrastructure.

She said maintaining macroeconomic stability remains the first line of defence. Governments must continue efforts to reduce debt vulnerabilities, while central banks need to remain vigilant against inflation. Persistent price pressures, particularly those linked to energy and food costs, risk eroding household incomes and deepening poverty.

Georgieva urged policymakers to preserve central bank independence and maintain credibility in inflation-targeting frameworks to prevent inflation expectations from becoming entrenched.