For the IMF, the international community must strengthen its support to Africa, in order to enable it to recover from the COVID-19 crisis, and strengthen its growth. This is in addition to carefully calibrated domestic policies for this purpose.
This is a position defended by the director of the Fund, Kristalina Georgieva, in a joint statement with Domitien Ndihokubwayo, chairman of the African Caucus, an entity that brings together African heads of government and the governors of the World Bank Group and the IMF.
For the latter, the main priority therefore remains a significant increase in the production capacity of the COVID-19 vaccine and the acceleration of the deployment of the vaccine, but also to protect livelihoods and vulnerable groups. Indeed, while the sub-Saharan region has been one of the least affected by the pandemic, from a health point of view, it is no less badly affected, from an economic point of view. With a noticeable slowdown in growth.
The two representatives also note that the recovery should be much slower in sub-Saharan Africa, in contrast with North Africa, rich in hydrocarbons, which should experience faster growth. In this regard, the per capita incomes of many countries are not expected to return to pre-Covid levels before 2025.
In this perspective, the representative of the African Caucus told Ms. Georgieva that “substantial additional funding” will be necessary for Africa to achieve its main development goals. No details on the terms of this possible funding have yet been provided.
Source Ecofin Agency