African Consultative Group Meeting: Statement by the Chairman of the African Caucus and the Managing Director of the IMF

IMF News, April 26, 2024

Source details

Canonical URL: African Consultative Group Meeting: Statement by the Chairman of the African Caucus and the Managing Director of the IMF

Press Release No. 24/129
Date: April 25, 2024
Issuers: Mr. Wale Edun (Nigeria’s Minister of Finance and Chair of the African Caucus) and Ms. Kristalina Georgieva (Managing Director of the IMF)
The African Consultative Group (ACG) comprises the Fund Governors of a subset of 12 African countries belonging to the African Caucus and Fund management; formed in 2007; meets at the time of the Spring Meetings. Fund Management meets with the full membership of the African Caucus at the time of the Annual Meetings.

Growth projections:
- Africa’s growth expected to reach 3.5 percent in 2024.
- Africa’s growth expected to reach 4 percent in 2025.
Near-term dynamics:
- Nearly two thirds of the countries on the continent are anticipating higher growth in 2024.
- Recovery drivers cited: modest easing in global financial conditions, recovery in private investment and consumption.
- Some countries have returned to international capital markets after almost a two-year hiatus.

Growth remains too weak to secure improvements in standards of living.
Growing income divergence between the continent and more advanced countries post-pandemic.
Financing constraints:
- Many governments continue to grapple with financing shortages.
- High debt service costs reduce budgetary space for priority investment and social spending and limit ability to deal with future shocks.
Climate and humanitarian shocks:
- Ongoing climate shocks such as severe droughts and floods exacerbate food insecurity and poverty.

Strengthen resilience to surmount multi-faceted challenges through:
- Domestic adjustment policy efforts.
- Structural reform agendas complemented by access to adequate and affordable financing.
Review of concessional facilities:
- ACG underlined the necessity for the upcoming review of LICs facilities to adapt to the changing global environment to continue serving vulnerable members.
Financing instruments and coordination:
- Keep all financing options on the table.
- Encourage coordination with the World Bank’s 21st Replenishment of the International Development Association (IDA21).
- Fund and partners should help the continent tap into green financing.
Balance in Fund instruments:
- The PRGT Review should achieve the right balance between short-term pressures from high demand and long-term sustainability.

Capture opportunities from:
- The climate transition.
- The digital transformation, especially the arrival of artificial intelligence.
Strengthening financial sector resilience is emphasized as important.
Resilience is necessary to deliver on climate ambitions including Nationally Determined Contributions (NDC) and the African Union’s Agenda 2063.

The Fund is presented as an agile institution that evolves and adapts to changing membership needs and is committed to supporting Africa’s resilience.

Statement issued at the conclusion of the African Consultative Group meeting.