Press Release No. 13/400

Press Release by the African Governors of the World Bank Group and the International Monetary Fund

October 11, 2013

We, the African Governors of the World Bank Group and the International Monetary Fund, met in Washington D.C. on October 10, 2013, to reflect on the ongoing and uncertain global economic developments.

We are deeply concerned about the increased downside risks to the global economy and how they impact on us. These downside risks have been amplified in our countries against the backdrop of limited fiscal space, continued decline in commodity prices, declining trade flows and reduced access to concessional funding. We are also worried about uncertainty regarding the unwinding of unconventional monetary policies and the threat of potentially devastating budgetary challenges in the US which if left unaddressed could derail the fragile recovery. Therefore, we call on policymakers in advanced economies to be aware of negative spillovers of their policy actions and ensure that stimulus exit strategies are communicated clearly.

At the same time, we also call upon policy makers in Europe to urgently complete their reform agenda, including financial sector repair, measured pace of fiscal consolidation and policies that foster global demand.

Against this backdrop, we reiterate our commitment to pursue inclusive growth-oriented policies consistent with macroeconomic stability, and to rebuild buffers as much as possible for our economies to better cope with external shocks.

We call on the IMF and the WBG to make a concerted effort to raise additional resources, including through bilateral contributions to ensure availability of adequate concessional resources should the downside risks materialize. In this context, we call on both traditional and non-traditional IDA donors to increase their support to IDA17 Replenishment. On our part, we reaffirm our commitment to continue implementing sound policies and working towards achieving inclusive growth as we have done over the past decade.

Our efforts to promote inclusive growth will require active engagement with the BWIs. This engagement will be enhanced when the deficiency in our representation in the IMF is addressed with the urgency it deserves. In this regard, we reiterate our call to the IMF to establish a Third Chair for SSA.