IMF Africa chief warns aid cuts leave region exposed to shocks
IMF African Department Director Zeine Zeidane says bilateral aid to Africa is projected to fall 12% this year, leaving little room to absorb new shocks.
The story in focus
At an IMF press briefing in Bangkok on 15 October 2026, African Department Director Zeine Zeidane said reforms in Ethiopia, Nigeria and South Africa have strengthened macroeconomic stability, but projected a further 12% fall in bilateral aid to the region this year, leaving little buffer against fresh shocks.
- Zeidane cited subsidy and exchange rate reform in Ethiopia and Nigeria, and structural reform in South Africa, as strengthening macroeconomic stability.
- Bilateral aid to the region is projected to fall by 12% this year, following a steep decline last year.
- The director flagged energy supply disruption, higher global risk aversion and a strong El Niño as risks, with conflict an added drag.
Uneven growth across the region
Speaking at the annual meeting in Bangkok, IMF African Department Director Zeine Zeidane said reforms across the continent had helped strengthen macroeconomic stability, pointing to subsidy and exchange rate reform in Ethiopia and Nigeria and structural reform in South Africa.
He said the regional aggregate masks very different country experiences. Higher oil, copper and gold prices are cushioning some exporters, while growth is slowing in non resource intensive economies and their external deficits are widening. Energy supplies have been rerouted, inventories drawn down and businesses have adapted sourcing and logistics, but he cautioned that resilience is not immunity.
Aid, risks and policy priorities
Zeidane projected that bilateral aid to the region will fall by a further 12% this year after a steep decline last year, leaving little room to absorb another shock. He named renewed energy supply disruption, a sharp rise in global risk aversion and a strong El Niño as pressures, alongside conflict and insecurity in parts of the region.
He set out three priorities: protecting vulnerable households while preserving fiscal space, for example through school feeding or targeted support and temporary price relief that is transparently funded, capped and time bound; safeguarding stability, including saving commodity windfalls and repaying costly debt; and pursuing reforms on electricity, digital connectivity, skills and the business environment to unlock investment and jobs.
What aid projection did the IMF official give for Africa this year?
Zeidane said bilateral aid to the region is projected to fall by a further 12% this year, after a steep decline last year, leaving the region with little room to absorb another shock.
Sources & further reading
- IMF Africa Department Press Briefing ↗mediacenter.imf.org
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