Opening Remarks at High-Level Virtual Event on ‘Mobilizing with Africa’

IMF News, April 17, 2020

Source details

Canonical URL: Opening Remarks at High-Level Virtual Event on ‘Mobilizing with Africa’

As prepared for delivery by Kristalina Georgieva, IMF Managing Director, April 17, 2020.
Aim: Work in partnership with Africa to bring more attention and more resources so the continent can overcome the COVID-19 crisis.
Emphasis on international solidarity and rapid action to address both the health emergency and its economic consequences.

World Economic Outlook projection: "the worst global downturn since the Great Depression."
For Africa: projected economic contraction of "at least 1¼ percent this year"—described as "the worst reading on record."
Fiscal positions: Already weak fiscal positions will further deteriorate at a time when fiscal policy must be deployed to strengthen health systems and support vulnerable households and businesses.
Risk: Without rapid and adequate international support, the crisis "threatens to reverse the continent’s development gains and damage prospects for years to come."

IMF mobilization target for Africa in 2020: "upwards of US$18 billion for Africa in 2020."
Operational measures:
- Temporarily doubled access under IMF emergency facilities.
- Streamlined procedures to deliver rapid financial support.
- Responded to "over 40 requests from our member countries in Africa."
Concessional lending efforts:
- Seeking to replenish the Poverty Reduction and Growth Trust with the objective to "triple our concessional lending capacity for low-income countries."
- Membership response: commitments from Japan, France, the UK, Canada, Australia and several others "take us to 70 percent of the resources needed for this goal."

Support for G-20 decision: Suspend debt service payments from IDA-eligible least developed countries to official bilateral creditors through "end-2020."
- Number of IDA-eligible least developed countries in Africa referenced: "39 countries in Africa."
Recognition of contributions: France, Germany, China, and Saudi Arabia helped advance the deal.
IMF instruments:
- Reformed the IMF’s Catastrophe and Containment Relief Trust to provide debt relief to the poorest members.
- Number of poorest IMF members in Africa seeking additional funds to extend relief: "23 are in Africa."
Call to action: "We call on private creditors to also be part of the solution."
Coordination note: "Together with the World Bank, we will pay close attention to countries faced with high burdens of debt."

IMF role: stepped up advice and knowledge-sharing on policies to address the crisis.
Policy priorities:
- Prioritize action to strengthen health services and protect the most vulnerable people and parts of the economy.
Opportunity framing: Encourage Africa to capitalize on opportunities presented by the crisis to become more competitive and to "leap forward, for example, with e-governance and fintech."

Affirmation: "Working with Africa, I have no doubt that we will overcome this crisis and ensure that Africa will become the most dynamic region in the 21st Century."

Source: Opening Remarks at High-Level Virtual Event on ‘Mobilizing with Africa’, Kristalina Georgieva, April 17, 2020.