Since its establishment in 1952, the Global Monetary Fund (IMF) has been a most major participant in Africa’s economic scene, lending monetary give a elevate to to many countries at some stage in the continent.
Nonetheless, Botswana, Libya, and Eritrea hold illustrious themselves by asserting their monetary independence without ever borrowing from the IMF.
Botswana
Botswana has managed to discontinuance financially self reliant through cautious management of its sources and innovative economic policies. In spite of getting a rather minute inhabitants of about 2.72 million, Botswana’s economic system is anticipated to grow by 3.6% this one year.
Libya
Libya identified for its oil wealth, has additionally managed to preserve a 0-debt file with the IMF, underlining its monetary self-sufficiency.
Eritrea
Eritrea has likewise performed without borrowing from the IMF, opting to retain its economic activities without exterior monetary assist.
Background Anecdote
Whereas these three countries stand out for their independence from IMF borrowing, the broader African context reveals a heavy engagement with the IMF. Collectively, Forty eight African countries owe round USD 42.2 billion to the IMF, making up about one-third of the IMF’s total outstanding credits.
From 1952 to 2023, the IMF has made 1,529 mortgage commitments worldwide, with about 40% of those directed in direction of African countries. On average, every African nation has accessed IMF sources 12 times, which is a puny bit elevated than the international average.
The largest African borrowers from the IMF are Egypt, Côte d’Ivoire, Ghana, Kenya, and Angola, with debts ranging up to $15 billion for Egypt alone. Collectively, these 5 countries myth for over 40% of the total IMF lending to Africa.
In summary, whereas many African nations rely on the IMF for monetary give a elevate to, Botswana, Libya, and Eritrea hold confirmed that it is that it is seemingly you’ll per chance per chance per chance assume of to preserve economic balance and enhance through self-reliance.
