The International Monetary Fund (IMF) has reduced its growth forecast for several African countries, warning that the continent’s economic progress may slow down if certain challenges are not addressed quickly. The new forecasts, released in May 2025, show that a mix of falling commodity prices, high global interest rates, natural disasters, political unrest, and internal economic weaknesses are putting pressure on African economies.
In Angola, the IMF has cut its 2025 growth projection from 3% to 2.4%. The downgrade is coming at a time when the country is facing serious economic pressure. According to the IMF, Angola is dealing with the effects of falling global oil prices and difficulties in securing foreign funds. These problems recently forced the government to pay an extra $200 million to get a $1 billion loan from JPMorgan, one of the world’s biggest investment banks. The IMF said this kind of borrowing highlights the fragile state of countries that depend heavily on external loans. It also warned that Angola’s finances may get worse if these issues continue.
In the Middle East and North Africa (MENA) region, the IMF has also adjusted its growth expectations. The forecast for 2025 has dropped from 4% (as projected in October 2024) to 2.6%. This major cut reflects fears over geopolitical tensions in the region, declining oil earnings, and weakening global demand for exports. Officials from the IMF explained that low consumer spending, falling investment, and global trade problems are hurting the economic outlook in the MENA region.
Mozambique is also facing a difficult situation. The country’s 2024 growth rate, which was earlier predicted at 4.3%, is now expected to be lower. The IMF said this is due to political unrest after recent elections and the damage caused by Cyclone Chido. The cyclone destroyed infrastructure and disrupted transport routes, making it difficult for businesses to operate. The IMF says it will review Mozambique’s economic outlook once the political situation in the country stabilizes.
In South Africa, the government has reduced its own 2024 economic growth target from 1.3% to 1.1%. Finance Minister Enoch Godongwana made this known during the half-year budget presentation. He said the country now expects an average growth of 1.8% in the next three years. The change in projections comes after poor tax collections and rising debt slowed down government performance. While South Africa has managed to keep the lights on for over 200 days without power cuts—a notable improvement—many observers still worry about whether its economic policies are strong enough to create long-term stability.
The IMF’s latest updates show how difficult things are for many African countries trying to grow their economies. The organisation pointed out that heavy reliance on oil and gas, unstable political environments, and poor infrastructure make it hard for growth to be consistent. It called on African governments to implement strong structural reforms, reduce overdependence on oil exports, and diversify into other sectors like agriculture, manufacturing, and technology.
The IMF also encouraged countries to focus on improving governance and creating an environment where both local and foreign investors can feel confident. It said that international partnerships and financial discipline are key if Africa wants to meet its long-term development goals.
These revisions are a wake-up call for African leaders to move quickly and tackle the issues slowing down their economies. Whether it is reforming policies, building better roads, reducing debt, or cutting wasteful spending, the message from the IMF is clear—action is needed now to avoid deeper economic problems in the future.
