MARRAKECH, Morocco, is hosting the annual meetings of the IMF and World Bank, drawing attention to Africa. A first-of-its-kind event on the African continent, this event brings the spotlight back to the continent in ways never seen before. Given recent geopolitical changes, Africa’s role in global conflicts has become crucial.
Additionally, this event comes when African countries are experiencing sluggish growth, food insecurity, and debt problems. Despite the present situation, IMF Managing Director Kristalina Georgieva sees Africa’s strengths and opportunities. The continent’s youthful demographic also makes it an area of opportunity, she says.
In an interview with CNN’s Eleni Giokos, Georgieva highlighted the need for African leaders to create buffers and pursue growth opportunities in the short, medium, and long term.
The IMF boss voiced worry about the financial strain on low-income African countries due to high inflation and public debt, attributed to the Covid-19 pandemic’s shrinking fiscal space.
Georgieva highlighted tackling inflation as the primary focus globally and a key agenda item in Marrakech to achieve lower interest rates.
The IMF managing director expressed concern about the world’s lack of productivity and emphasized the need for growth: “When the world slows down, opportunities for low-income countries also slow down. This Marrakech event brings the world together to address short- and long-term challenges.”
She expects the meetings in Marrakech to focus on Africa due to uncertainty and currency devaluation. They aim to nurture a common view on moving the world economy forward, recognizing achievements during Covid.
Georgieva suggests prioritizing emerging markets, particularly Africa’s young population, as they are crucial for growth but often face joblessness and skills shortages.
“We at the IMF are committed to helping countries safeguard social expenditures and enhance the quality of spending, especially in education,” she said.
The IMF Managing Director suggests three ways to maximize AfCFTA benefits: eliminating trade and non-trade barriers, increasing trade within Africa by 53%, increasing trade between Africa and the world by 15, and promoting digital money.
She praises Africa’s continental free trade agreement, citing progress and regional advancement. She believes good leadership leads to more traction and success. “In other words, the continent has its own regional agreements, and where there is good leadership, we see more traction. It all comes down to this: ‘There is a way when there is a will. ”
Georgieva expresses hope for Africa, highlighting its fantastic continent with smart, dynamic people who could define the century and wishes for success for everyone on the continent.
