However, these loans from the IMF can have deep and varied effects on their economy, particularly African economies.
Typically as a last resort, countries often turn to the IMF in times of economic crisis to help stabilise their financial systems, but, notwithstanding, some African nations have chosen to either exit or forgo their engagements with the International Monetary Fund (IMF) for various reasons.
While the motivations and contexts differ across countries, here are a few notable examples of African countries that have recently opted out of, or not pursued IMF programmes.
Kenya
The East African nation just fell foul of the International Monetary Fund (IMF) and investors are not too happy.
Kenya backed down after deadly protests following President Ruto’s failed quest in bolstering the country’s tax collection.
It was then forced to terminate its IMF programme after a series of rioting and looting by the youth.
Kenya is the newest African country to terminate its IMF programme.
Nigeria
Nigeria, Africa’s largest economy, has long been a key player in the continent’s economic landscape.
Despite facing periodic fiscal crises and economic challenges, the country has successfully avoided entering into long-term programs with the International Monetary Fund (IMF) for many years.
This decision has been driven by a desire for greater autonomy over its economic policies, as well as a preference for alternative forms of financial support.
South Africa
South Africa has traditionally avoided seeking IMF assistance, especially after the end of apartheid.
Although the country has faced economic difficulties, including a strained fiscal position, it has preferred to rely on domestic policy measures and international capital markets rather than entering into IMF programs.
Zimbabwe
Zimbabwe’s relationship with the IMF has been turbulent, mainly due to its hyperinflation crisis and contentious land reform policies.
While the country has received assistance from the IMF in the past, it has not entered into any IMF programs in recent years.
Zimbabwe is looking at boosting its macro and micro economic indicators with the introduction of the Zigcoin (ZIG) to connect investors with expert traders to optimise returns through a copy trading mechanism.
Ethiopia
Ethiopia, with a long history of cooperation with the IMF, has recently made efforts to reduce its reliance on international financial institutions.
The government has focused on implementing domestic reforms, including strategies for debt management and economic diversification.
Angola
The Southern African nation once reached an agreement with the International Monetary Fund (IMF) in 2018 but has shifted its focus towards leveraging its own resources and implementing domestic policy reforms.
While the country still seeks the IMF’s advice, it has not entered into any formal loan agreements in recent years.
Countries that hesitate to engage in IMF programs often do so in an effort to retain greater control over their domestic economic policies or due to challenges in meeting the IMF’s conditions.
Each nation’s decision is influenced by its unique political, economic, and social circumstances.
Source: www.ghanaweb.com
