## 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](https://www.imf.org/en/news/articles/2019/10/21/tr101919-transcript-of-the-october-2019-african-finance-ministers-press-conference) ## Other formats - [Markdown version](/en/news/articles/2019/10/21/tr101919-transcript-of-the-october-2019-african-finance-ministers-press-conference/index.md) - [Structured JSON version](/en/news/articles/2019/10/21/tr101919-transcript-of-the-october-2019-african-finance-ministers-press-conference/index.json) - [Bundle manifest](/en/news/articles/2019/10/21/tr101919-transcript-of-the-october-2019-african-finance-ministers-press-conference/bundle-manifest.json) ## 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.* --- ## References - [PRESS CENTER](http://presscenter.imf.org/) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2019/10/21/tr101919-transcript-of-the-october-2019-african-finance-ministers-press-conference_