Rate squeeze leaves sub-Saharan Africa in serious financial bind

MARRAKECH: The International Monetary Fund (IMF) urges sub-Saharan African policymakers to cut costly fuel subsidies and raise more in taxes, measures that may be hard to implement as governments grapple with tough spending choices amid high debt.

The region has been hit by repeated economic shocks since 2020, from the Covid-19 pandemic to Russia’s invasion of Ukraine and rising US interest rates, putting cash-strapped, debt-laden governments in a political and financial bind.