Transcript of the October 2019 African Finance Ministers Press Conference
IMF News, October 21, 2019
Source details
- Canonical URL
- Transcript of the October 2019 African Finance Ministers Press Conference
Other formats
Bibliographic details
- Published: October 21, 2019
Participants and context
- Press conference held October 21, 2019; organized by IMF Communications Department.
- Moderated by Gediminas Vilkas, IMF Communications Department.
- Ministers/Speakers:
- ABDIRAHAMAN DUALE BEILEH, Somalia
- ABDOULAYE DAOUDA DIALLO, Senegal
- MOHAMED LEMINE OULD DHEHBI, Mauritania
- UKUR YATANI KANACHO, Kenya
- Focus: African economic integration, challenges and opportunities, and the African Continental Free Trade Agreement (AfCFTA) signed in March 2019.
Opening remarks — framing of integration and trade
- Emphasis that intra-African trade historically underdeveloped; imperative to "start looking to our neighbors."
- AfCFTA presented as timely and central to boosting regional trade and resilience amid global trade tensions.
Country-level priorities and programs
- Somalia (Abdirahman Duale Beileh)
- Somalia described as "fragile" with a long debt overhang; no access to concessionary IFI windows for 30 years.
- Expectation of a decision point early next year (speaker's phrasing) that could lead to cancellation of debt and access to concessionary windows.
- Horn of Africa Program in development with trade as a major component; co-proposed by African Development Bank, The World Bank, and the EU.
- Regional integration work with other countries includes infrastructure, rules and regulations, and tariff systems.
- Observation: Somalis are traders by culture; mobile money is taking over; Somalia is a multi-currency country (Somali shilling and dollar in circulation).
- Senegal (Abdoulaye Daouda Diallo)
- Senegal described as a precursor of African unity; participates in multiple sub-regional authorities including ECOWAS and a Monetary Union.
- National program "Phase 2 of PSE" (PSE Phase 2): "$14.8 billion for 700 projects" over five years.
- Program summarized by "Number 535": "five initiatives ... three programs ... five major thrusts of the Number 535."
- Concern that Africa’s inter-regional trade is low: "Fifteen percent of our trade is inter-African" versus Asia "almost 60 percent, 50 percent" and Europe "about 70 percent."
- Stressed prerequisites for integration: infrastructure, security, convergence and better management of public finances, and industrialization to build resilience.
- Views offshoring as potential opportunity.
- Mauritania (Mohamed Lemine Ould Dhehbi)
- Characterized Africa as a market of "more than 1.2 billion inhabitants, a GDP of more than $3 trillion."
- Mauritania signed a partnership agreement with ECOWAS; 2020 budget work includes customs tariffs; ratified agreement on the free trade zone.
- Identified obstacles: borders among 55 countries, low rate of foreign trade specialization, need for coordinated economic policies and public investment to improve competitiveness.
- Noted Africa as a reservoir of commodities and referenced "the African mining vision" and IDA as relevant frameworks.
- Kenya (Ukur Yatani Kanacho)
- AfCFTA seen as able to "increase inter-trade within African countries with a potential benefit increasing trade by more than 50 percent."
- East African Community cited as a success: wider market, joint prosperity, nurturing young industries.
- Noted persistent non-tariff barriers, high transport costs, protection of infant industries, need to liberalize services and harmonize labor practices.
- Emphasized ICT infrastructure, economic zones, and facilitation services; highlighted Kenya’s role with M-Pesa in financial inclusion.
Responses on global trade tensions and multilateralism (Q&A)
- General view: global U.S.-China tensions present both risks and potential opportunities (offshoring).
- Mauritania: described the tensions as "an unfortunate opportunity" and a potential final destination for capital given Africa’s commodities and labor.
- Senegal: cautioned impacts via energy prices and financial markets; AfCFTA timing supports building resilience and promoting massive industrialization.
- Somalia: currently not a major player in international trade; has not yet felt direct impacts.
- Kenya: effects depend on existing trade arrangements; opportunity realization varies by country.
- Multilateral institutions and IMF quotas
- Ministers urged continued support for multilateral institutions; called them essential for fragile and developing countries.
- On IMF quota reforms and representativeness: African ministers view increasing African voice/weight in multilateral institutions as important and a continuing struggle.
Currency, convertibility, and monetary integration
- Observations:
- Multiple ministers highlighted the challenge of having many currencies (the transcript references "almost 40 different currencies" in Africa in Q&A context).
- Senegal: participation in regional monetary unions (eight-country union) and ECOWAS intends to pursue a common currency (speaker stated determination "to work towards achieving that common currency by the year 2020").
- Mauritania and other ministers saw currency issues as involving a psychological component as much as economics; convertibility and convergence needed for deeper integration.
- Kenya emphasized using regional/payment innovations (e.g., M-Pesa) and urged trade in African currencies to build confidence over time.
- Somalia: trading with neighbors and accepting multiple currencies (Somali shilling and dollar) is workable at present; mobile money uptake strong.
Kenya–Somalia maritime dispute — effect on trade
- Both Somalia and Kenya stated the maritime border dispute has not affected bilateral trade or day-to-day relations.
- Kenya affirmed confidence in international courts and respect for their decisions; noted Kenya’s long-standing humanitarian and operational support for Somalia (hosting refugees, humanitarian operations from Nairobi).
Key statistics and exact figures cited in the discussion
- "more than 1.2 billion inhabitants"
- "a GDP of more than $3 trillion"
- Senegal PSE Phase 2: "$14.8 billion for 700 projects" over five years
- Africa inter-regional trade: "Fifteen percent of our trade is inter-African"
- Asia intra-regional trade comparisons: "almost 60 percent, 50 percent" (phrasing in source)
- Europe intra-regional trade comparison: "about 70 percent"
- AfCFTA potential effect (Kenya): "increase inter-trade within African countries with a potential benefit increasing trade by more than 50 percent"
- Reference to "55 different countries" when discussing borders and obstacles
Policy implications and recommendations emerging from remarks
- Prioritize infrastructure investments (transport, ports, ICT) to lower trade costs and connect markets.
- Strengthen security and political stability as prerequisites for deeper integration.
- Coordinate economic policies and public investment programs to enhance competitiveness and sectoral complementarity.
- Promote industrialization and labor-intensive sectors to absorb offshoring opportunities and build resilience.
- Advance monetary cooperation, convertibility, and payment innovations to facilitate intra-African trade and reduce reliance on external currencies.
- Maintain and support multilateral institutions (IMF, World Bank, AfDB) for financing, policy support, and crisis resilience.
Transcript of the October 2019 African Finance Ministers Press Conference, IMF Communications Department, October 21, 2019.