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Should we call Botswana, Eritrea and Libya, the last standing? Over the years, the International Monetary Fund (IMF) has served as a lender of last resort, playing a pivotal role in fostering sustainable growth and prosperity across its 190 member countries. The IMF aims to enhance productivity, job creation and overall economic well-being by supporting economic policies that promote financial stability and monetary cooperation Since the IMF’s full-scale operations began in 1952, it has been a crucial resource for African nations facing global economic shocks. South Africa was the first African country to access IMF resources in 1958. Since then, African countries have frequently turned to the IMF for assistance. Currently, 48 African nations collectively owe $42.2 billion to the IMF, including Special Drawing Rights (SDR) credits. Among these, the top five African borrowers in terms of volume - Egypt, Côte d'Ivoire, Ghana, Kenya, and Angola account for over 40% of IMF lending to Africa. Additionally, the countries with the most frequent borrowing include Liberia (24 times), Kenya (23 times), Morocco (22 times), Senegal (22 times), Mali (21 times), and Madagascar (20 times). However, just three African nations - Botswana, Libya, and Eritrea have never borrowed from the IMF, standing out as exceptions in a continent that has often sought the Fund's support.

Weekend read alert!Check out my article on how Africa is on course to disrupt global economic governance and cement its position as a Rule Maker! https://lnkd.in/dkSbgwds @afrodad

With the just concluded #AfDB Annual meetings, the momentum is high for reforms of the global financial architecture, with a section of African countries already leading the charge in shaping this discourse and being Rule Makers! Read more here: https://lnkd.in/eEz8xfKS

Following the recent International Monetary Fund and The World Bank Spring Meetings, a major update was announced: these institutions will review the Debt Sustainability Analysis (DSA) framework for low-income countries within the next two years. This review is crucial as it offers Africa a chance to push for important changes in the global financial system, especially in how debt crises are resolved. The existing DSA framework, created in 2005, has been criticized after defaults in countries like Ghana, Zambia, and Ethiopia, highlighting the need for updates. Africa is advocating for more cautious economic forecasts within the DSA to better reflect current global uncertainties, including the impacts of the Covid-19 pandemic and geopolitical tensions. Additionally, there is discussion about the Africa Development Bank (AfDB) possibly creating an alternative DSA to provide a balance to the IMF and World Bank's analyses. This upcoming review aims to improve the accuracy of economic forecasts and streamline debt restructuring processes, making it easier for struggling nations to find solutions. #Africa #BrettonWoods #DebtReview #GlobalFinance #IMF #WorldBank #DSA #EconomicReform #DebtRestructuring

🔴GOVERNMENT🔴Johannesburg, South Africa – South Africa’s long-term foreign and local currency debt ratings have been affirmed at ‘BB-’ by Fitch Ratings, with a stable outlook. This rating reflects both the strengths and weaknesses in the country’s economic and fiscal structures. While South Africa’s credit profile faces several challenges, particularly around low GDP growth, high poverty and inequality, and a rising debt-to-GDP ratio, Fitch acknowledges that there are some bright spots that help support this rating. Full News⬇️ https://lnkd.in/d9fd7-Rd

Pursuing stable fiscal policy stance in developing economies is crucial for development. #ivorycoast’s #eurobonds rallied after the nation’s credit score was lifted by #Moody’s Investors Service, which cited the resilience of the economy and rising private sector #investments. This is a positive example to be followed by other African #government to boast private sector dynamic which is of paramount importance for real economic #growth, #poverty alleviation, #employment creation and long-term prosperity. #africa #ivorycoast #angola #institutosuperiordegestao #banks #development #fiscalpolicy #monetarypolicy #creditworthiness #creditrating https://bloom.bg/48FXp4w

Life is returning to the moribund Sovereign debt market of Africa but until these countries find avenues to generate revenues, boost exports and reduce dependency on imports, history would continue to repeat and there could be more vicious cycles in the future. Lure of higher yields may look tempting but it has quite often haunted institutional investors as was witnessed in the default instances of Zambia, Ghana and Ethiopia in the recent past. #frontiermarkets #africa #sovereigndebt #highyield African governments return to international bond markets from TheEconomist https://lnkd.in/d9b-UWrG

#WestandCentralAfrica #currencies #1948CFAFrancstory #sovereignty #food #energy #finance #France #IMF #WorldBank #aid 'At no point in history has the CFA franc – the name of a colonial currency used in west and central African countries belonging to the franc zone – been closer to its demise. Senegal has overwhelmingly voted for leftwing Pastef candidate Bassirou Diomaye Faye (and his former party leader Ousmane Sonko) while the coup governments in Mali, Burkina Faso and Niger have been talking about leaving the CFA franc for some time. Senegal under outgoing president Macky Sall was a pillar of the longstanding French attempt to remain influential among its former colonies, often named “Francafrique”. Now newly elected Faye, under the moniker of “Left Panafricanism”, has vowed to make his country more sovereign in food, energy and finance. Never before have four west African governments, including one of the regional leaders, Senegal, been simultaneously eager and ready to get out of the neo-colonial stranglehold of the CFA franc. The CFA franc zone was founded by then colonial power France after the second world war. Its aim was to ensure a continuously cheap influx of resources into France. The zone is divided into two. The west African CFA franc zone has eight members: Mali, Niger, Burkina Faso, Senegal, Côte d'Ivoire, Benin, Togo and Guinea-Bissau. The central African zone has six: Cameroon, Gabon, Republic of Congo, Central African Republic, Chad and Equatorial Guinea. Historically, as shown by Fanny Pigeaud and Ndongo Sylla in their book Africa’s Last Colonial Currency: The CFA Franc Story, serious attempts at leaving the CFA franc since its inception in 1948 have been sabotaged by France. The reaction to Faye’s agenda by the International Monetary Fund, the World Bank and other donors and creditors will be crucial to watch. To what extent the new Senegalese government is prepared to dispense with their sizeable sums in aid and credits remains to be seen. Niger recently did dispense with them and reduced its budget by 40% as aid was frozen.'

🌍💰📈 News that move the debt markets in Africa today Based on the summaries available, the key pieces of news relevant to debt markets in Africa today are the exclusion of Gabon from the African Growth and Opportunity Act (AGOA) by the US due to governance issues [1], and the World Bank's warning about global growth slowing down, which is expected to prolong poverty and increase debt levels in developing countries [2]. Here is a concise analysis: - Gabon's exclusion from AGOA could affect its economic growth due to limited access to tariff-free exports to the US, potentially increasing the country's vulnerability to debt issues by reducing government revenue from exports [1]. - The World Bank's report on slowing global growth signals worsening conditions for debt markets in Africa, as developing countries may face higher debt levels and prolonged poverty, exacerbating their economic challenges [2]. - Higher interest rates and inflation, as highlighted by the World Bank, have direct implications for debt servicing costs for African nations, potentially leading to increased borrowing costs or difficulties in meeting existing debt obligations [2]. - The specifics of Gabon's situation, including the US not being among its top 10 trading partners but affecting exports primarily consisting of primary goods, underline the nuanced impacts of geopolitical decisions on debt markets through trade relationships [1]. - The overall expected slowdown in global growth due to various geopolitical and economic factors, including the COVID-19 pandemic and the war in Ukraine, directly influences the debt sustainability of African countries by limiting their economic expansion and increasing the burden of existing debt [2]. These factors combined present a challenging outlook for the debt markets in Africa, with implications ranging from increased borrowing costs to constrained fiscal spaces for African countries. 👉 Read more here: https://lnkd.in/gnPHfhXA #africa #finance #startups #entrepreneurship#india #finance #deals

Here are some positive achievements of the IMF for Africa that I’d like to point out : + the latest restructuring of the Ghanaian debt, with the tricky negotiations with the Ghanaian bond holders (Eurobonds …) : up to $4,7 Billions foregone. I hope for Ethiopia as well. + the Malian achieved emergency dossier for the needed financing, in times of fierce struggle against terrorism and amid the Sahel known ongoing crisis + my home country’s ECF (the Chad's Extended Credit Facility) negotiated under the IMF direction in order to fix a lasting cautious dossier related to the governance of the oil exploitation (and precisely the «Glencore case» + other creditors). That’s concretely what those Brettonwoods institutions (IMF, world Bank …) are poised to do for countries in need of financial solutions but cannot get access easily to the classic tools/ways (markets …). Yet, I merely know that many things must be improved in the IMF for the emergent and developing countries (rights of vote for the direction, SDRs, etc.). By the way, the new alternatives like the Chinese New Development Bank related to the BRICS … could be complementary. Provided that one finds the best use. And especially regarding my Africa ! For a positive and sound PANAFRICAN standing ! Kan kaou kédé le Afrique le ci, nekeumkar bba kan ra !