The Big Africa Funding Squeeze:
The confluence of higher global interest rates, elevated sovereign debt spreads, and exchange rate depreciations, among other factors, has created a funding squeeze for many countries in sub-Saharan Africa.
This challenge comes on top of policy struggles from the ramifications of the COVID-19 pandemic and the cost-of-living crisis.
Reflecting these considerations, economic activity in the region will remain subdued in 2023, with growth at 3.6 percent before rebounding to 4.2 percent in 2024 predicated on a global recovery, subsiding inflation, and the winding down of monetary policy tightening.
International Monetary Fund, Apr 2023