African finance ministers and central bank governors are scrambling to secure emergency financing from global lenders as the economic fallout from the escalating US–Iran conflict threatens to derail fragile recovery gains across the continent.
Meeting on the sidelines of the IMF and World Bank Spring Meetings in Washington, policymakers warned that a convergence of external shocks—including surging energy prices, disrupted supply chains, and declining foreign aid—has significantly weakened Africa’s growth outlook.
According to Business Insider Africa, African policymakers are increasingly turning to institutions such as the International Monetary Fund and the World Bank for support as the crisis deepens.
Growth Outlook Weakens
Sub-Saharan Africa entered 2026 on relatively firm footing, recording growth of around 4.5% in 2025 following years of stabilisation reforms. However, the ripple effects of the Middle East conflict have since reversed momentum.
The IMF now projects growth to slow to between 4.2% and 4.3% in 2026, citing rising fuel and fertiliser costs, worsening food insecurity, and mounting social pressures exacerbated by reduced development assistance.
“The war adds another layer of complexity, with the potential for severe scarring, including inflation, food shortages and social tensions,” said Seedy Keita, chair of the African Caucus, in a joint statement with IMF Managing Director Kristalina Georgieva.
Countries Race for Emergency Support
Several African economies have already begun seeking urgent financial assistance.
The Republic of the Congo has requested a new IMF programme after completing its previous arrangement, while Angola is pursuing a $165 million budget support loan from the African Development Bank as part of a broader financing plan.
Kenya has also approached the World Bank for rapid financial support to cushion against fuel shortages and inflationary pressures triggered by rising oil prices.
Meanwhile, Mozambique faces hurdles in securing fresh IMF assistance, with the Fund indicating that the country does not yet meet the conditions for a new programme despite ongoing negotiations.
Diverging Economic Fortunes
A widening divide is emerging across the continent. Countries that have implemented fiscal reforms and improved debt management are showing greater resilience and maintaining investor confidence. In contrast, more fragile economies are experiencing acute financing pressures amid tightening global liquidity.
Wale Edun, Finance Minister of Nigeria, said his country is not currently seeking a new IMF programme, emphasising domestic reforms aimed at stabilising the economy.
“We are focused on revenue mobilisation, exchange rate reforms, and reducing dependence on external borrowing,” Edun has previously stated.
Rising Risks and Uncertainty
The IMF has warned that at least a dozen African countries may soon seek new loan programmes, cautioning that even a swift resolution to the conflict would not fully mitigate long-term disruptions—particularly if critical shipping routes such as the Strait of Hormuz remain affected.
Inflation is expected to rise again across the continent, reversing recent gains in price stability, while food insecurity and poverty levels are projected to worsen.
With no clear end in sight to the geopolitical crisis, African policymakers now face a difficult balancing act: managing inflation, protecting vulnerable populations, and sustaining economic growth—all while increasingly relying on external financing to navigate a volatile global environment.
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