MARRAKESH: Pummelled by poverty, debt, and natural disasters, African countries heard many pledges of support but witness little action at the first IMF-World Bank talks to be held on their soil since 1973.
The myriad challenges facing the continent were front and centre at the week-long discussions in Marrakesh, Morocco, which started Monday and end Sunday.
The managing director of the International Monetary Fund (IMF) Kristalina Georgieva said from day one that holding the meetings in Africa was substantively and symbolically very important, AFP reported.
She said that a prosperous world economy in the 21st century needs a prosperous Africa.
In an effort to boost the continent’s voice within the IMF, the international lending agency said on Saturday its members agreed to give sub-Saharan Africa a third seat on its executive board.
Georgieva said Saturday the deal warmed her heart the most.
The move, which will be effective in 2024, does not increase Africa’s voting power within the institution, whose main shareholders are the United States (US), Japan, China, and western European powers.
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For some African officials, a good start would be erasing the mountain of debt that is forcing many nations to spend much of their revenue on paying back interest.
Ivory Coast’s Economy Minister Adama Coulibaly who heads the G24 group of developing nations, said most of the debt is owed to IMF and multilateral development banks.
Coulibaly said that they are warning against a debt crisis that could stifle inclusive and durable growth.
Debt distress in Africa
More than 20 African nations are either already in or on the edge of debt distress.
In some nations, more than 40% of the state budget goes to servicing the debt — an unsustainable level in states that need to maintain basic public services such as electricity and water.
But talks to restructure debts have become more complicated over the years as new creditors such as Saudi Arabia, China, and Brazil have emerged, in addition to private lenders.
