African countries with limited money supply are facing substantial issues that threaten their economic stability and growth prospects. According to a recent report by the International Monetary Fund (IMF), the top 10 African countries with the lowest money supply in 2024 have been identified, with Côte d'Ivoire ranking number one on the list.

A low money supply can be a detrimental issue, particularly in Africa, where investment and development are vital to success. It frequently indicates a lack of liquidity in the economy, which might put off investors who see such countries as less stable and more vulnerable to financial disasters. This, in turn, inhibits long-term investments, such as foreign direct investment (FDI), which are critical to economic growth.

When a country's money supply is low, governments are less able to enact successful policies. For instance, a limited money supply during economic downturns makes it difficult to implement stimulus measures such as increased public expenditure or looser monetary policy to boost borrowing and consumer spending.

Furthermore, it is frequently difficult for African nations with low money supply levels to keep their currencies robust. A limited money supply might result in reduced demand for the local currency, further devaluing it and lowering its purchasing power. Inflation, trade imbalances, and import prices can all be exacerbated by this currency volatility.

The IMF's Regional Economic Outlook report provides a comprehensive analysis of the African countries with the lowest broad money as a percentage of their GDP. The top 10 countries are: Côte d'Ivoire (11.9%), Zimbabwe (14.2%), São Tomé and Príncipe (16.7%), Niger (17.1%), Sierra Leone (18.3%), Equatorial Guinea (19.0%), Angola (19.5%), Ethiopia (21.3%), Uganda (21.5%), and Chad (21.6%).

The implications of a low money supply are far-reaching, with potential consequences for economic growth, investment, and development. As African countries strive to overcome the challenges posed by limited financial resources, it is essential to address the root causes of this issue and implement policies that promote economic stability and growth.

In conclusion, the report highlights the need for African countries to prioritize economic stability and growth by addressing the underlying issues contributing to their low money supply. By doing so, they can create an environment conducive to investment, development, and long-term prosperity.