BY BAMIDELE FAMOOFO
The International Monetary Fund has affirmed that the economies of its member countries in Sub-Saharan Africa are stable and that the outlook is also good.
The Fund also praised efforts of the Ministers of Finance in the region for pursuing well-targeted policies consistent with the maintenance of macroeconomic stability and a robust medium-term reform agenda.
IMF Managing Director, Kristalina Georgieva, made the disclosures at the conclusion of a meeting with African Ministers of Finance on the Region’s Economic Prospects recently.
“I was encouraged by the commitment of Ministers from the region to pursue well-targeted policies consistent with the maintenance of macroeconomic stability and a robust medium-term reform agenda. These include measures to improve revenue mobilisation, enhance governance and transparency, promote entrepreneurship, address the challenges posed by climate change and achieve higher and more inclusive growth. Particular attention is also needed to generate broader economic opportunities—including for women, youth, and vulnerable groups that have been disproportionately affected by the pandemic,” she stated.
The meeting also highlighted the importance of renewing efforts to deepen international cooperation, mobilise financing from the international community, and address challenges associated with fragility, insecurity, and persistent economic risks.
Georgieva was particularly encouraged to hear that most Ministers agreed that the IMF’s recent $650 billion SDR allocation to member countries was helping them address these challenges, while noting that additional efforts will be needed.
“We recognized the importance of African countries having a seat at the table in discussions on issues that affect them, in order to ensure global efforts to support them are as effective as possible,” she said.
A statement issued at the meeting showed that “There was also broad agreement that reducing vulnerabilities, including those associated with rising debt levels, are an important priority over the medium term. In this regard, improving the functioning of the G-20 Common Framework for Debt Treatments and its timely implementation will be crucial for those countries that may require debt treatment. Moreover, actions and broader reforms to reduce risks and build confidence would help bring investment and financing to the region at lower cost.”
Meanwhile, the IMF maintained that the global economy is rebounding, “with our October World Economic Outlook projecting 5.9 percent growth this year and 4.9 percent in 2022. However, we project sub-Saharan Africa to grow by 3.7 percent this year and 3.8 percent next year, increasing the divergence vis-à-vis advanced economies—and that amidst rising uncertainty around new variants and financial conditions. In particular, new COVID-19 variants require continued vigilance and a renewed global push to increase vaccine equity. Countries in the region also need to continue to prioritise critical measures to overcome the ongoing health crisis and social assistance programs for vulnerable groups.”
Georgieva, however, advised that countries in the region should continue to address the health crisis, while ensuring that policies are well-targeted and consistent with the maintenance of macroeconomic stability.
