The International Monetary Fund has issued a series of recommendations aimed at alleviating the frustrations of citizens in Nigeria and other Sub-Saharan African countries undergoing economic reforms.
The advice comes against the backdrop of rising public discontent, including protests and resistance, which have complicated the implementation of macroeconomic changes in the region.
In its latest Regional Economic Outlook for Sub-Saharan Africa report, the IMF highlighted that nations such as Nigeria, Ghana, Ethiopia, and Kenya, which are currently implementing deep economic reforms, are experiencing what it termed “adjustment fatigue.” This condition has, in some instances, escalated to civil unrest and labor disputes.
Nigeria, for example, has faced multiple episodes of public discontent and labor strikes in response to the effects of reforms, particularly the deregulation of fuel prices and the foreign exchange market.
To address these challenges, the IMF has laid out comprehensive recommendations focused on enhancing public acceptance and support for reforms. Key strategies include broad-based engagement with citizens, clear communication of reform benefits, partnerships with influential leaders, careful design and sequencing of reforms, compensatory measures to cushion the effects on vulnerable groups, and fostering inclusive growth.
The IMF noted that successfully navigating these reforms hinges on addressing the frustrations of citizens.
The report read, “In the face of popular frustration, there is also an opportunity to work to mobilize support for large, deep reforms, of the sort that, for instance, Ethiopia, Ghana, Kenya, and Nigeria are pursuing. Realizing this opportunity requires rethinking reform strategies, to build and maintain pro-growth coalitions among constituent leaders and the general public. This will require greater attention to communication and engagement strategies, reform design, compensatory measures, and rebuilding trust in public institutions.”
The report emphasized the importance of direct engagement with the public, advocating for a participatory approach that fosters two-way dialogue with stakeholders and citizens. This strategy, it noted, can help design policies that the public feels a sense of ownership over, thereby securing buy-in from businesses and civil society.
“Policymakers will need to focus on broad-based engagement with populations; a participatory approach, involving a two-way dialogue with stakeholders and the population at large, can help design policy approaches; building a sense of ownership among the public, and garner support from both business and civil society,” the IMF stated.
It further stressed the need for clear and transparent communication to dispel misinformation and highlight the benefits of reforms.
“Communications should clearly articulate the benefits of reform, the costs of inaction, the accompanying compensatory measures, and correct misinformation and misperceptions. Partnering with key figures including parliamentarians, community leaders, and independent researchers is also essential. The emphasis should be on listening to concerns and designing appropriate responses,” the report advised.
The IMF underscored the necessity of appropriately designing and sequencing reforms to avoid overwhelming the population. Demonstrable and immediate gains, it argued, could bolster public support for subsequent reforms.
“The costs and benefits of multiple reforms should be appropriately spaced through time so as not to overburden populations. Demonstrable, upfront gains will boost support, and beginning with reforms that do not threaten the core benefits of multiple social groups has been shown to improve success.”
To ease resistance, the IMF recommended targeted policies to assist those most affected by reforms. These include social safety nets, job search assistance, and retraining programs.
“Appropriately designed and well-targeted policies to support those most affected by reforms… can help overcome resistance to reform by mitigating potential social costs,” the report noted.
The Fund also called for the fair and transparent management of public resources, emphasizing the importance of building trust in government institutions.
“A strong governance framework that fosters trust in government and in its ability to adequately implement policies—including by promoting transparency, increasing accountability, strengthening the rule of law, and controlling corruption—is a precondition for public backing of any reform strategy. Opinion surveys indicate that trust in the government’s ability to use public resources to promote the population’s well-being is still relatively low in many sub-Saharan African countries.”
The report concluded by stressing the need for reforms that guarantee inclusive growth, addressing issues such as low economic growth, unemployment, and social exclusion.
“As painful as the current policy choices are, deeper and broader reforms will be required to guarantee that countries reap the gains, and not just the pain, of reform. Most of the region is struggling with low growth, lack of jobs, and widespread social exclusion. Unlocking more durable and inclusive growth, by making the economy work more effectively for all, will simultaneously reduce both macroeconomic vulnerabilities and social frustration, easing the task of policymakers,” the IMF advised.
The Regional Economic Outlook report serves as a regular update on the challenges and growth opportunities within Sub-Saharan Africa, offering critical insights to policymakers across the region.
