## 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](https://www.imf.org/en/news/articles/2024/04/26/pr24129-african-consultative-group-meeting-statement)

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## Bibliographic details
- Published: April 26, 2024

---

### Meeting metadata and context
- 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.

### Economic outlook and key projections
- 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.

### Risks, vulnerabilities, and social impacts
- 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.

### Policy recommendations and financing options
- 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.

### Opportunities, reforms, and structural priorities
- 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.

### Institutional stance
- 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.*

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## References

- [Nigeria and the IMF](http://www.imf.org/external/country/NGA/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [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/2024/04/26/pr24129-african-consultative-group-meeting-statement_