IMF urges Africa to seize reform moment to unlock growth and jobs

The International Monetary Fund (IMF) has urged Sub-Saharan African countries to accelerate structural reforms and deepen regional integration to unlock growth potential and create jobs for the continent’s fast-growing youth population.

Speaking on Wednesday at the opening of a new policy center ahead of the IMF and World Bank Annual Meetings next week, IMF Managing Director Kristalina Georgieva said that while the global economy has shown resilience in the face of multiple shocks, deep transformations in technology, geopolitics, and demographics were creating uncertainty — and opportunity — especially for emerging regions such as Africa.

“In this multi-polar world of rapid change, policymakers must do much more to capture and deliver opportunity so they can meet the aspirations of their citizens, especially young people,” Georgieva said.

Georgieva noted that Sub-Saharan Africa stood to benefit significantly from comprehensive, business-friendly reforms that improve competitiveness and productivity.

“Gains from reforms in this region can be especially large given the young and growing labour force,” Georgieva said.

“Comprehensive business-friendly reforms, combined with progress in building the Continental Free Trade Area, could lift the real GDP per capita of the median African country by over 10%.”

The IMF chief said the region’s demographic strength — with one of the world’s youngest populations — could become a powerful engine of growth if accompanied by policies that improve access to finance, strengthen governance, and foster innovation and entrepreneurship.

“This is not a time for self-inflicted injuries. It is a time to get the house in order,” she warned, calling on African governments to simplify regulations, reduce red tape, and strengthen institutions to attract investment and empower the private sector.

The IMF highlighted the African Continental Free Trade Area (AfCFTA) as a key instrument to boost regional trade, industrialization, and investment flows. Deeper trade integration and the lowering of non-tariff barriers, Georgieva said, could meaningfully lift long-term growth and support resilience against global shocks.

“Africa’s economic potential is immense — but to realize it, governments must accelerate implementation of the AfCFTA and ensure that reforms are inclusive and transparent,” she said.

Georgieva added that increased productivity and economic diversification are vital to ensuring that growth translates into better jobs, higher incomes, and stronger social protection systems.

Turning to fiscal policy, Georgieva cautioned that rising global debt, which the IMF projects will exceed 100% of GDP by 2029, poses a serious risk to developing economies, including many in Africa. She urged African countries to strengthen public finances by improving tax collection and managing debt prudently.

“Rising debt inflates interest payments, exerts upward pressure on borrowing costs, constrains other spending, and reduces governments’ ability to cushion shocks.

"Fiscal consolidation is more important than ever, in countries rich and poor alike. For low-income countries, this means more self-help — including setting a minimum tax-to-GDP target of 15%,” she said, adding that strong fiscal frameworks are essential for protecting vulnerable populations and maintaining investor confidence.

In closing, Georgieva emphasized that Africa’s young population represents both a challenge and a chance for transformational progress.

“Africa has the world’s youngest workforce — that’s a tremendous asset. But to turn that into shared prosperity, we need policies that create opportunity: sound governance, strong institutions, reliable data, and smart regulations,” she said.

“If we all pull together in this complex and uncertain world, we can deliver good policies that increase resilience and accelerate growth. A dream you dream alone is only a dream. A dream you dream together is reality.”

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