{
  "title": "IMF Survey: Better Business Climate Can Soften Crisis Impact on Africa",
  "publication": "IMF News, April 22, 2012",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/53/socar042112b",
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  "summary": "African countries are focusing on improving their business climates to soften the impact on their economies of the crisis in the euro zone, African finance ministers tell reporters in Washington, adding that faster domestic policy reforms will encourage foreign investment in the continent.",
  "publishDate": "2012-04-22",
  "sections": [
    {
      "heading": "Overview: ministers' assessment and priorities",
      "content": "- African finance ministers at the 2012 IMF-World Bank Spring Meetings said faster domestic policy reforms that encourage foreign investment would help maintain sustainable and inclusive growth.\n- Ministers highlighted that rising global commodity prices were making Africa’s food and energy imports significantly more expensive.\n- Policy responses emphasized:\n  - Improving the business climate through fiscal reforms.\n  - More efficient domestic farm production to replace imported foodstuffs.\n  - Enhanced regional integration and intraregional trade to accelerate import substitution."
    },
    {
      "heading": "Country reports and specific developments",
      "content": "- Mozambique (Finance Minister Manuel Chang):\n  - Reported lower foreign trade volumes, declining export prices, a drop in foreign investment, reduced aid flows, and falling remittances as a result of the global economic crisis.\n  - Response: addressing falling foreign investment by improving the business climate through fiscal reforms; stimulating startups and job creation to counter falling remittances.\n  - Noted membership: Southern African Development Community promotes intraregional trade.\n\n- Mauritius (Finance Minister Xavier-Luc Duval):\n  - Mauritius sends 65 percent of its exports of sugar and textiles to European consumers, who were reducing demand.\n  - Expected subdued tourism and foreign investment for the year.\n  - Government actions: diversified the economy and reformed the tax structure to make conditions more business friendly.\n  - Result cited: Mauritius being the first African country to make the top 10 in the Heritage Foundation-Wall Street Journal Index of Economic Freedom.\n\n- Burundi (Finance Minister Tabu Abdallah Manirakiza):\n  - Experiencing impacts on growth and budget from the global financial crisis.\n  - Authorities advancing a second-generation poverty reduction strategy and focusing on tourism development.\n  - Noted improvement: rising in the rankings of the World Bank’s Doing Business report.\n\n- Burkina Faso (Finance Minister Lucien Marie Noel Bembamba):\n  - Promoting growth via a new Strategy for Accelerated Growth and Lasting Development.\n  - Recent successful donors conference interpreted as a sign of international confidence in government policies.\n  - Reforms include strengthening economic governance and promoting efficient management of government spending.\n  - Observed policy aim: reduce operating costs to free up resources.\n  - Noted link: membership in the West African Economic and Monetary Union represents a link to the euro area."
    },
    {
      "heading": "Policy recommendations and measures highlighted",
      "content": "- Business-climate reforms:\n  - Fiscal reforms to improve investment conditions.\n  - Tax-structure reforms to make conditions more business friendly.\n- Agricultural and trade policy:\n  - Increase efficiency of domestic farm production to substitute for imported foodstuffs.\n  - Maximize intraregional trade to protect from global crises and accelerate import substitution.\n- Regional integration and investment promotion:\n  - Speed regional integration and remove nontrade barriers.\n  - Implement double taxation agreements and investment promotion pacts between countries.\n  - Encourage inter-Africa trade via regional economic groupings (e.g., Southern African Development Community)."
    },
    {
      "heading": "Key messages",
      "content": "- Faster domestic reforms that encourage foreign investment are central to maintaining sustainable and inclusive growth.\n- Diversification, fiscal and tax reforms, and regional integration are presented as primary tools to soften crisis impacts and foster resilience.\n- Intraregional trade and improved domestic production can mitigate higher import costs from rising global commodity prices.\n\nIMF Survey: Better Business Climate Can Soften Crisis Impact on Africa — April 22, 2012\n\n---\n\n Content in this bundle\n\n- Car042112bfpdf (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Country Focus\n- In The News\n- Watch ministers webcast\n- West Africa growth on rebound\n- African integration benefits\n- Africa’s new optimism\n- Blog: inclusive African growth\n- Private sector to drive Africa\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/53/socar042112b"
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    "Published: April 22, 2012",
    "African finance ministers at the 2012 IMF-World Bank Spring Meetings said faster domestic policy reforms that encourage foreign investment would help maintain sustainable and inclusive growth.",
    "Ministers highlighted that rising global commodity prices were making Africa’s food and energy imports significantly more expensive.",
    "Policy responses emphasized:",
    "Mozambique (Finance Minister Manuel Chang):",
    "Mauritius (Finance Minister Xavier-Luc Duval):",
    "Burundi (Finance Minister Tabu Abdallah Manirakiza):",
    "Burkina Faso (Finance Minister Lucien Marie Noel Bembamba):",
    "Business-climate reforms:",
    "Agricultural and trade policy:",
    "Regional integration and investment promotion:",
    "Faster domestic reforms that encourage foreign investment are central to maintaining sustainable and inclusive growth.",
    "Diversification, fiscal and tax reforms, and regional integration are presented as primary tools to soften crisis impacts and foster resilience.",
    "Intraregional trade and improved domestic production can mitigate higher import costs from rising global commodity prices.",
    "[Car042112bfpdf (PDF)](/-/media/websites/imf/imported/external/french/pubs/ft/survey/so/2012/car042112bfpdf.pdf){rel=\"external\" type=\"application/pdf\"}",
    "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[IMF Country Focus](https://www.imf.org/en/news/country-focus)",
    "[In The News](https://www.imf.org/en/news/search)",
    "[Watch ministers webcast](https://www.imf.org/external/mmedia/view.aspx?vid=1575484134001)",
    "[West Africa growth on rebound](https://www.imf.org/external/pubs/ft/survey/so/2012/INT032212A.htm)",
    "[African integration benefits](https://www.imf.org/external/pubs/ft/survey/so/2012/CAR031512A.htm)",
    "[Africa’s new optimism](https://www.imf.org/external/pubs/ft/survey/so/2011/car121411a.htm)",
    "[Blog: inclusive African growth](http://blog-imfdirect.imf.org/2011/10/19/how-to-make-economic-growth-in-sub-saharan-africa-more-inclusive/)",
    "[Private sector to drive Africa](https://www.imf.org/external/pubs/ft/survey/so/2012/NEW032212A.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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