AFRICA, June 24 -- AFRICAN governments are being forced into difficult fiscal decisions as a sharp decline in foreign aid threatens funding for health, education and humanitarian programmes across the continent, according to an analysis published by IMF Country Focus.

After decades in which official development assistance served as a critical source of financing, sub-Saharan Africa is confronting a new reality of shrinking donor support.

Bilateral aid to the region is estimated to have fallen by about 26 per cent last year alone, while multilateral institutions are also facing budget pressures that could result in further reductions.

The cuts come at a time when many African countries are already grappling with high debt burdens, limit...