Market News

By Godfrey Mutizwa

The International Monetary Fund has urged African countries to quicken reforms, implement sound macroeconomic policies and deepen regional integration to weather shocks from geoeconomic fragmentation amid growing competition for capital.

The Fund’s Managing Director Kristalina Georgieva told CNBC Africa that the continent’s greatest opportunity lay in presenting itself as a unified investment destination with deeper collaboration and 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.”

The IMF projects sub-Saharan Africa’s economy to grow by 4.3% in 2026, down slightly from an estimated 4.5% in 2025, as higher fuel, fertilizer and food prices, tighter global financial conditions and geopolitical tensions weigh on activity. The World Bank sees growth at 4.1% in 2026, unchanged from 2025 but revised lower due to the impact of Middle East-related shocks, rising debt-service costs and persistent structural constraints.

Both institutions say while domestic demand and reform efforts are supporting growth, Africa must accelerate structural reforms, strengthen macroeconomic stability and attract private investment if the continent is translate growth into jobs, poverty reduction and long-term economic transformation.

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

Georgieva believes Africa is uniquely positioned to benefit from one of the most transformative economic shifts of the coming decades: the rise of artificial intelligence.

She says the continent possesses several strategic advantages that are becoming increasingly valuable in the AI era including its young and growing population and the world’s highest concentration of critical minerals and natural resources that underpin digital infrastructure, energy systems and emerging technologies.

However, 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 both domestic and foreign capital.

Georgieva said while the global economy has proven resilient in recent years, ongoing energy supply disruptions linked to conflict in the Middle East continue to pose inflation risks, while massive investment flows into artificial intelligence are 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.

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