Sub-Saharan Africa has proved resilient to the war in the Middle East, with growth forecasted to hold steady at 4.5% in 2026, but some countries are feeling the strain more than others. Several countries are relying on greater local-currency financing, while the IMF highlights the importance of stronger credit information systems and sufficient commercial-bank capital and liquidity buffers, while warning that banks’ growing exposure to government debt could heighten risks to financial stability. African countries and financial institutions are meanwhile deepening local-currency and regional payment options, with PAPSS expanding, Angola allowing commercial banks to use Chinese yuan to meet FX reserve requirements, and Afreximbank issuing its first Panda bond. The IMF’s Africa Director discusses how African economies and financial markets can navigate what the Fund calls “a precarious world”.