Africa is rapidly becoming the world’s next major engine of growth, fueled by a swiftly expanding population, with a significant proportion of youth. However, without stronger support and strategic domestic reforms, the region risks missing a rare opportunity.
Speaking at the release of the IMF’s latest Regional Economic Outlook for Sub-Saharan Africa, Abebe Aemro Selassie, Director of the IMF’s African Department, highlighted the continent’s critical role in shaping global prosperity in the coming decades. “A strong, stable, and prosperous Sub-Saharan Africa is important for its people but also the world,” he stated. “It is the region that will be the main source of labor and incremental investment and consumption demand in the decades to come.”
However, Selassie cautioned that the benefits of Africa’s demographic transition are not guaranteed. External challenges, such as tighter global financial conditions, declining development assistance, and weaker global demand, threaten to impede the region’s fragile recovery. Furthermore, high debt levels and ongoing inflation in several countries continue to strain governments’ capacity to invest in essential sectors such as education, health, and infrastructure.
The IMF report projects that economic growth in Sub-Saharan Africa will ease to 3.8 percent in 2025, a downward revision from earlier forecasts, with “difficult external conditions” being a significant contributing factor. Selassie emphasized that urgent reforms are necessary to strengthen fiscal management, mobilize domestic revenue, and foster private-sector-driven growth, which is essential to create the millions of jobs needed for Africa’s growing youth population.
Without stronger policy actions and sustained external support, the region may face rising unemployment, increasing social tensions, and missed opportunities for global economic dynamism. “External support as the region goes through its demographic transition is of tremendous strategic importance for the future of our planet,” Selassie stressed.
The IMF’s continuous financial assistance and policy support deliver a clear message: investing in Africa’s future is not only crucial for the region but also represents a strategic investment in the future of the world.
