IMF Managing Director Kristalina Georgieva has pledged the Fund’s full support to Ghana and other countries facing economic risks from the ongoing global tariff war.
Speaking at the launch of the Global Policy Agenda during the IMF/World Bank Spring Meetings in Washington, DC, she underscored the Fund’s readiness to deploy its tools and resources.
“We can fall on our policy tools to assist any country, including financial assistance when needed,” she stated. “As always, we will be there for our members by helping them secure economic and financial stability.”
While many African countries may not feel the immediate effects of rising tariffs, Georgieva cautioned against complacency.
She pointed to the potential for significant indirect impacts such as supply chain disruptions, inflationary pressures, and reduced global demand.
“I am worried about the indirect impact,” she said. “Every country in the region must build more buffers and push forward with reform programs to withstand future shocks.”
She called on Ghana to take swift action by tightening fiscal policies and strengthening its economic base. “There is still a lot that can be done on the fiscal side,” she said. “Continue strengthening Ghana’s fundamentals.”
Georgieva also placed a strong emphasis on tax reform, urging the government to widen the tax net. “Don’t use any excuses. Do more to broaden the tax base by reducing tax evasion and tax avoidance,” she said firmly.
She acknowledged that the tariff war could bring both challenges and benefits, depending on each country’s economic makeup.
Oil-exporting countries like Nigeria could face fiscal strain from declining oil prices, while oil-importing nations might benefit from lower import costs. Regardless, she warned that low-income countries must confront difficult decisions.
“We cannot have countries with a tax-to-GDP ratio below 15 percent and still expect to sustain the functioning of the state,” she emphasized.
Turning to monetary policy, Georgieva advised central banks to maintain a delicate balance between controlling inflation and fostering growth. “Watch the data. Watch inflation expectations,” she said. “Credibility is key, protect it.”
In her closing remarks, she urged African nations to strengthen regional cooperation and increase intra-African trade. “Africa has so much to offer, from vast natural resources to a young, energetic population,” she said. “A united and collaborative Africa can emerge as a global economic force.”
Her message was clear: while the IMF stands ready to help, African governments must act decisively to reinforce their economies against the ripple effects of global trade tensions.
