Import restrictions, forex scarcity biggest challenges to businesses in Nigeria, other African countries – IMF

The International Monetary Fund, IMF, has said that import restrictions and foreign currency scarcity make it difficult for businesses to thrive in Nigeria and other Sub-Saharan African countries.

The Washington-based Fund disclosed this in its Regional Economic Outlook for Sub-Saharan Africa’ A Tepid and Pricey Recovery’.

The IMF explained that the twin challenges of import restrictions and foreign currency shortages could mar the post-pandemic recovery in terms of the profitability of companies across the region.

The IMF noted that the region’s post-pandemic recovery comes during a time of global uncertainty and shocks, as rising interest rates push Sub-Saharan African (SSA) countries’ expenditures from critical capital investments towards debt servicing.

“Moreover, several countries face challenges like foreign currency shortages or import restrictions (for example, Angola, Chad, Ethiopia, Kenya, and Nigeria), which cause complicated business operations. This comes when companies in the region have just turned a leaf and returned to pre-pandemic profitability.”

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“The liquidity squeeze is imperilling the growth prospects of the region’s future generations, as funds are sorely lacking to address the vast development needs, intensified by the pandemic’s scarring effects.”