The African Caucus and the International Monetary Fund have reaffirmed collaboration to strengthen resilience and deepen economic transformation across the African continent.
Chairman of the African Caucus and Minister of Finance and Economic Affairs of The Gambia, Seedy Keita and IMF managing director Kristalina Georgieva stated this in a statement jointly issued after a meeting held in Bangkok, Thailand, on Wednesday.
“We held a constructive discussion on the policies and partnerships needed to strengthen Africa’s resilience to multiple shocks and advance the continent’s economic transformation,” the statement read.
The statement explained that African economies had demonstrated notable resilience in recent years, noting growth in the continent was expected to hold up this year at 4.5 percent while inflation was expected to decline to 9.3 percent despite the spillover from the war in the Middle East.
“While terms-of-trade gains would support resilience in the resource-rich economies, expansionary fiscal policy would help mitigate the impact of the shock on non-resource-rich economies.
“External buffers remain protected, on average, but debt vulnerabilities are elevated in several economies, debt-service costs are absorbing scarce resources, and declining external assistance is further constraining development spending. A tightening of global financial conditions and a severe El Niño could add to these pressures,” the statement added.
According to them, Africa’s extraordinary entrepreneurial energy is where the world can find its next engine of global growth.
“The African Caucus reaffirmed its commitment to safeguarding the region’s hard-won macroeconomic stability, mobilizing Africa’s own resources, and accelerating job creation and broadening opportunities,” it said.
The statement noted that in a shock-prone world, macroeconomic stability remained essential for sustained and inclusive growth.
Noting that higher energy prices had raised costs for households and businesses, it said that debt-service burdens, declining aid, and costly market financing constrained development spending and climate-resilient investment.
“Policymakers therefore stressed the need to contain inflation, ensure fiscal and debt sustainability, strengthen policy frameworks, and enhance governance and transparency,” the statement noted.
The duo insisted that Africa’s resources must deliver more for its people, noting that modern, efficient, and equitable tax systems should broaden the revenue base, and strengthen compliance.
The statement added, “More durable revenues and spending smarter can protect vulnerable households, meet development needs, and finance climate resilience. Continued international support through affordable financing and technical expertise will remain essential.
“Sound policies and strong institutions are essential for structural transformation and job creation. Job-rich growth requires a more attractive investment climate, greater development of financial markets, and deeper regional integration.”
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