News from Asia and the Pacific
More Concerted Efforts Needed to Promote Private Investment in Africa, Says IMF Director at TICAD7
August 29, 2019, Yokohama, Japan – Reiterating the IMF’s commitment to working with African countries to strengthen their economic and financial policies, visiting IMF African Department Director Abebe Aemro Selassie today called for concerted efforts to help bring more private investment into Africa at a side event of TICAD VII, the 7th Tokyo International Conference on African Development.
Speaking at the G20 Compact with Africa seminar, Mr. Selassie said that many African countries have made economic and social progress, yet the continent still faces many challenges such as poverty. He emphasized that the importance of the Compact with Africa, a vehicle to promote private investment in Africa, is ever-increasing against the backdrop of the global economic slowdown.
Mr. Selassie said that the economic situation varies markedly among the 12 Compact countries, in particular between the northern African countries and the sub-Saharan countries. Still, he noted that all the Compact countries must accelerate implementation of reforms to promote private investment, delivering on their structural reforms to increase competitiveness, raise revenue collection and enhance the transparency of public financial management.
“There have been several notable investments that have happened as a result of the initiative, but not enough given the scale of the challenge,” he said, adding that strengthening partnership with international finance institutions is key to identifying bankable projects, mobilizing investors and providing technical expertise.
Mr. Selassie stated that the IMF is currently lending to 10 of the 12 Compact countries, provides policy advice on key issues relevant to the investment compacts, and supports all the Compact countries in capacity development. In the fiscal year 2018 alone, the Fund sent 67 technical assistance missions, made 344 country visits and provided training for over 1,700 country officials.
“I can assure you that we remain committed to working with Compact countries to strengthen macroeconomic and financial policy frameworks,” he reiterated.
TICAD is a policy dialogue conference launched by Japan in 1993 where African leaders and development partners meet every few years. This year Mr. Selassie participated in the summit plenary discussions as an observer and held a number of bilateral meetings with representatives of African nations during his stay in Japan.