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Home » Blog » Africa must boost private sector for growth – IMF
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Africa must boost private sector for growth – IMF

Kofi Agyeman
8 hours ago
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The International Monetary Fund (IMF) says countries in Sub-Saharan Africa, including Ghana, need to act faster to keep their economies on track.

It urges them to grow their economies by supporting the private sector, carry out strong reforms, and reduce waste in public spending, especially as the global environment remains uncertain.

In its April Regional Economic Outlook for Sub-Saharan Africa, the Fund points to several major challenges.

It explains that high business costs, weak state-owned companies, among others continue to slow down productivity, investment, and long-term growth.

The IMF also stresses the need for focused reforms in key sectors like energy, transport, and telecommunications.

It encourages governments to strengthen governance, improve transparency, and ensure state-owned enterprises recover costs properly.

At the same time, it advises them to protect vulnerable groups through carefully planned social support systems.

The report highlights the importance of speeding up the African Continental Free Trade Area(ACFTa) agenda.

It notes that reducing non-tariff barriers and upgrading customs systems will help cut trade costs, improve supply chains, and open up bigger markets for local businesses.

The Fund also draws attention to waste in public spending, especially in health, education, and infrastructure.

It warns that many countries are not getting the best results from the money they spend, which reduces the overall impact on development.

Beyond government spending, the IMF encourages countries to expand digital systems.

It recommends using affordable artificial intelligence tools to improve tax collection and public services.

It cautions that countries must support this with strong investments in energy, skills training, cybersecurity, and data systems.

The IMF calls for stronger domestic financial markets.

It believes this will help countries access funding in local currencies, lower borrowing risks, and support business growth.

It also urges governments to strengthen regulations to keep financial systems stable.

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TAGGED:African Continental Free Trade AreaGhana newsIMFSub-Saharan Africa
SOURCES:The Ghana Report

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