The International Monetary Fund (IMF) has reported that import restrictions and foreign currency scarcity are hindering business growth in Nigeria and other Sub-Saharan African countries. This was disclosed in the IMF’s Regional Economic Outlook for Sub-Saharan Africa titled ‘A Tepid and Pricey Recovery’.
The IMF highlighted that these challenges threaten the region’s post-pandemic recovery by impacting the profitability of companies. The recovery is occurring amid global uncertainty and economic shocks, with rising interest rates pushing Sub-Saharan African countries to divert expenditures from essential capital investments to debt servicing.
“Several countries face challenges like foreign currency shortages or import restrictions (for example, Angola, Chad, Ethiopia, Kenya, and Nigeria), complicating business operations,” the IMF noted. “This comes when companies in the region have just turned a leaf and returned to pre-pandemic profitability.”
The report warned that the liquidity squeeze is jeopardizing the region’s future growth prospects, as there are insufficient funds to meet significant development needs, which have been exacerbated by the pandemic’s lasting impacts.
