{"id":19967,"date":"2023-04-18T03:42:02","date_gmt":"2023-04-18T03:42:02","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/imf-says-sub-saharan-africa-already-feeling-effects-of-the-big-funding-squeeze-economics-bitcoin-news\/"},"modified":"2023-04-18T03:42:02","modified_gmt":"2023-04-18T03:42:02","slug":"imf-says-sub-saharan-africa-already-feeling-effects-of-the-big-funding-squeeze-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/imf-says-sub-saharan-africa-already-feeling-effects-of-the-big-funding-squeeze-economics-bitcoin-news\/","title":{"rendered":"IMF Says Sub-Saharan Africa Already Feeling Effects of the ‘Big Funding Squeeze’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Countries from the Sub-Saharan Africa (SSA) region face a \u201cbig funding squeeze\u201d which is forcing some of them to cut spending on health, education, and infrastructure. According to Abebe Aemro Selassie, people from the region are already \u201cfeeling the effects of the funding crisis.\u201d The IMF says countries from the SSA region should also consider having in place \u201ca well-functioning debt-resolution framework.\u201d<\/strong><\/p>\n

Region Faced With Increased Borrowing Costs and Reduced \u2018Access to Cheaper Funding\u2019<\/h2>\n

According to the International Monetary Fund, the Sub-Saharan Africa (SSA) region faces a \u201cbig funding squeeze\u201d which is being spurred by \u201cshrinking aid budgets and reduced inflows from partners.\u201d Without this funding, countries from the region will be forced to cut spending on health, education, and infrastructure, thus \u201cholding the region back from developing its true potential,\u201d a statement released by the global lender has said.<\/p>\n

Remarking on the region\u2019s declining share of funding, Abebe Aemro Selassie, the lender\u2019s director of the African department, claimed that people from SSA regions are already starting to feel the effects of this crisis.<\/p>\n

\u201cPeople in sub-Saharan Africa are feeling the effects of a funding crisis. Since Russia\u2019s invasion of Ukraine, [the] cost of living is more expensive, borrowing costs have increased and access to cheaper funding is dwindling. Coupled with a long-term decline in aid and a more recent fall in investment from partners, this means that there is less money to be spent on vital services like health, education, and infrastructure,\u201d Selassie argues.<\/p>\n

Selassie also warned that unless measures are taken to mitigate these risks, the region\u2019s goal of becoming the \u201cdriving force of the global economy in years to come\u201d will be hampered.<\/p>\n

IMF: SSA Region Countries Should Consider Allowing Their Currencies to Depreciate<\/h2>\n

Meanwhile, in its April 14 press release<\/a>, the IMF said has already played its part after it provided more than $50 billion to countries within SSA between the years 2020 and 2022. The lender also revealed that it had \u201clending arrangements with 21 countries\u201d while more requests for such programs are said to be under consideration.<\/p>\n

Besides waiting for a financial bailout, the IMF said countries from the SSA region should also consider having in place \u201ca well-functioning debt-resolution framework.\u201d Countries should also consider allowing their respective exchange rates to depreciate.<\/p>\n

\u201c[A final priority] is ensuring that important efforts to tackle climate change do not crowd out basic needs, like health and education. Climate finance provided by the international community must come on top of current aid flows,\u201d the IMF added.<\/p>\n

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What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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