The International Monetary Fund (IMF) is a key player in global finance, providing financial support to countries facing economic challenges, Countries usually turn to the IMF as a last resort to stabilise their financial systems during economic downturns. The Bretton Woods institution has 190 member countries…
These loans mitigate any economic hardships the aforementioned nations may be experiencing, According to Development Reimagined, the IMF committed 1529 loans between 1952 and 2023, of which almost 40% (608) went to African nations. “The typical African country accessed IMF resources an average of 12 times, which is slightly higher than the global average of 10 times. This means that the typical African country accessed IMF resources just once every five years,” it stated.
Which African countries have never borrowed from the IMF?
–Botswana is one of the three African nations that have never borrowed loans from the IMF. It maintained its financial independence through resource management and innovative economic strategies, Botswana has a population of 2.72 million people, and its GDP is projected to grow by 3.6% this year.
– Libya, The IMF revealed that Libya is another African country that had never taken its loans. “Libya also has no public debt in the standard sense. Its notional public debt represents the cumulative monetary financing of past fiscal deficits,” the IMF stated.
–Eritrea’s economy relies on agriculture and mining but is vulnerable to shocks. The World Bank noted that the country’s public debt was estimated at around 219% of GDP at the end of 2023, with 80% owed to local banks. Despite not borrowing from the IMF, it is among the highly indebted poor countries with debt distress.
