The International Monetary Fund(IMF) is a major financial agency which offers monetary assistance to governments suffering economic difficulties.
The Fund is a key player in global finance and mostly as a last resort, countries often turn to the IMF in times of economic crisis to stabilize their financial systems.
These loans help cushion the economic adversities said countries may be going through.
These loans from the IMF, however, can have deep and varied effects on their economy. These effects are felt in some parts of Africa, particularly in regions where the debt is unsustainable.
A loan from the IMF can boost a country’s credibility in the eyes of foreign investors. This rise in trust may result in higher foreign direct investment and better access to global capital markets.
IMF loans if not managed or utilized properly could hurt an economy. Aside from the fact that debts owed in general can cause financial stress in any economy, as it represents an expense that the country must take responsibility for, IMF loans often come with stringent conditions, including austerity measures such as reducing public spending, cutting subsidies, and implementing tax increases.
Below are the 10 African countries with the highest debts to the IMF, courtesy of the IMF’s official website.
Also, the list captures the data as of the 6th of December 2023.
10 African countries with the highest debts to the IMF.