High inflation and subsequent interest rate hikes in the US have had huge knock-on effects across the globe. Africa will need to shift dwindling financial resources to more productive uses if it is to emerge from the current crisis with optimism.
Taming runaway food prices and their devastating impact on national economies and people’s livelihoods is a key concern as the world’s financial policymakers gather in Washington this week for the first time since the Covid-19 pandemic.
The months-long Ukraine war and other global headwinds have left Africa’s largest economies struggling with relentless fiscal pressures and default risks, with soaring yields on the continent barely reversing an exodus of non-resident investors to developed nations.
IMF’s Selassie: ‘Picking on Africa, which has made zero contribution & needs to electrify, is startling’
Over the last 15 years, Africa has become integrated into the global economic fold. As a result, it is no longer immune to volatility in international markets; while the continent was largely cushioned from the fallout of the Global Financial Crisis in 2008, over the last 12 months, rising inflation, interest rate hikes, and broken supply chains, which have wreaked havoc in developed economies, are now taking their toll on Africa.