Since it started in 1952, the International Monetary Fund (IMF) has helped many African countries with money support.
However, not all African countries have taken loans from the IMF. Botswana, Libya, and Eritrea have managed without borrowing from the fund, showing a different way of handling their money matters.
Currently, 48 African countries owe the IMF about $42.2 billion altogether. But Botswana, Libya, and Eritrea have kept their financial freedom by not joining this list.
Botswana: Smart Money Management
Botswana has kept its financial freedom by managing its resources wisely and using smart economic strategies.
The country has about 2.72 million people and expects its economy to grow by 3.6% this year.
Libya: No Debt with the IMF
Libya has also avoided any loans from the IMF, maintaining its financial independence despite facing many challenges.
Eritrea: Independent Despite Challenges
Like Libya, Eritrea has not taken any loans from the IMF, keeping its financial independence even though it faces international challenges.
IMF and Africa: A Wider View
Though Botswana, Libya, and Eritrea have not taken loans, many other African countries have.
Since 1952, the IMF has given out 1,529 loan agreements globally, with about 40% going to African countries. On average, they have taken loans from the IMF 12 times.
Top Borrowers in Africa
The biggest borrowers from the IMF in Africa are:
- Egypt: $15 billion
- Côte d’Ivoire: $4.3 billion
- Ghana: $4.3 billion
- Kenya: $4.1 billion
- Angola: $4.1 billion
These five countries make up over 40% of the total IMF loans to Africa.
While most African countries have taken financial help from the IMF, Botswana, Libya, and Eritrea show that it is possible to manage without it.
Their way of handling their economies gives other countries examples to look up to if they want to reduce dependence on international financial help.
SOURCE: businesselitesafrica.com