The IMF warns that while many countries are pursuing fiscal consolidation to restore debt sustainability, sharp cuts to health, education and social protection could undermine long-term development and social stability.
The IMF notes that public finances in several African economies remain under strain following successive shocks, including the COVID-19 pandemic, global inflationary pressures and rising debt-servicing costs. These challenges have forced governments to tighten budgets, often through spending restraint and revenue-raising measures.
However, the report stresses that adjustment efforts must be carefully designed to avoid disproportionate impacts on vulnerable populations. Social spending, particularly on basic health services, education and targeted social safety nets, is described as “macro-critical” for sustaining inclusive growth and reducing poverty.
According to the IMF, countries that protect priority social expenditure during fiscal consolidation tend to achieve better development outcomes and stronger public support for reform programmes. TheIMF encourages governments to improve spending efficiency rather than rely solely on across-the-board cuts.
The report highlights the importance of strengthening domestic revenue mobilisation, including broadening tax bases and improving tax administration, as a more sustainable way to create fiscal space. Better public financial management and reduced waste are also identified as key tools for freeing up resources for essential services.
The IMF further calls on development partners to support African countries through concessional financing and technical assistance, particularly in low-income and fragile states where fiscal space is most constrained. Well-designed external support, the report argues, can help governments maintain critical social programmes while implementing necessary reforms.
At the same time, the Fund emphasises the need for improved targeting of social assistance to ensure that limited resources reach those most in need. Expanding digital systems and social registries is cited as one way to enhance the effectiveness of social protection spending.
As African economies continue to recover unevenly, the IMF concludes that protecting social spending is not only a moral imperative but also an economic one. Failure to do so, the report warns, could weaken human capital, deepen inequality and ultimately slow growth across the continent.
–IMF/ChannelAfrica–
