BIZweek n°237 19 avr 2019
BIZweek n°237 19 avr 2019
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  • Parution : n°237 de 19 avr 2019

  • Périodicité : hebdomadaire

  • Editeur : Capital Publications Ltd

  • Format : (260 x 370) mm

  • Nombre de pages : 11

  • Taille du fichier PDF : 4,3 Mo

  • Dans ce numéro : l'Afrique en pôle position.

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VENDREDI 19 AVRIL 2019 BIZWEEK ÉDITION 237 ACTA PUBLICA AFRICAN CONSULTATIVE GROUP MEETING « The key challenge that Africa faces is… » Minister Kenneth Ofori-Atta, Chairman of the African Caucus, and Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), co-chaired the African Consultative Group meeting on the 14th of April at the IMF Headquarters. They are of view that the economic recovery in Africa will continue but that medium-termgrowth for the region is expected to fall short The African Consultative Group comprises the Fund Governors of a subset of 12 African countries belonging to the African Caucus (African finance ministers and central bank governors) and Fund management. They held the Group’s meeting on Sunday 14th of April at the International Monetary Fund (IMF) Headquarters, and issued the following statement regarding the region’s economic growth. « We had very productive discussions on Africa’s economic developments and prospects. The economic recovery in Africa is expected to continue. However, under current policies and amid increased global uncertainty, medium-termgrowth for the region is expected to continue to fall well short of what is needed to absorb new entrants to the labor force. The key challenge that Africa faces is to invest in human and physical capital to create jobs while at the same time reducing debt vulnerabilities. « Against this backdrop, we agree that countries need to generate fiscal space, enhance resilience including to climate change, and create sustained high and inclusive growth, including by removing obstacles to greater gender equity. This will require, in particular  : (i) pursuing growth-friendly fiscal consolidations, where needed, that strike the right balance between development spending, reducing debt vulnerabilities, and meeting essential social needs ; (ii) strengthening the effectiveness of monetary policy to enhance the monetary transmission mechanism ; (iii) enhancing the flexibility of markets to facilitate adjustment to shocks and preserve competitiveness ; (iv) removing trade barriers to boost medium-termgrowth, including in the context of the African Continental Free Trade Agreement ; and (v) addressing illicit financing flows and base erosion to enhance governance and strengthen revenue collection. » Christine Lagarde, Managing Director of the IMF, stated that « the IMF will remain closely engaged with its African members. The Fund will continue to support the authorities’efforts to address the current macroeconomic and structural challenges and achievea stronger, durable and inclusive growth to absorb new entrants in the labor force. » Minister Kenneth Ofori-Atta, Chairman of the African Caucus, echoed Ms. Lagarde on the economic prospects of the continent, and the willingness of the sub-region to work closely with the IMF to tackle emerging concerns. He emphasized the need for members to sustain commitment to structural reforms and encouraged the Fund to show patience in its program engagement when there is demonstrated ownership by country authorities for successful outcomes. Outcome of the Thirty-Ninth Meeting of the IMFC Chaired by Lesetja Kganyago, Governor of the South African Reserve Bank, on the 13th of April, the Thirty-Ninth Meeting of the International Monetary and Financial Committee (IMFC) suggested that risks to worldwide economic growth were « tilted to the downside » due to factors such as trade tensions, policy uncertainty and the sudden tightening of financial conditions. The higher risks are presenting themselves against a backdrop of limited policy space, historically high debt levels and heightened financial vulnerabilities, officials said in the joint communique of the International Monetary Fund’s steering committee. GLOBAL OUTLOOK AND POLICY PRIORITIES The global expansion continues, but at a slower pace than anticipated in October. Growth is projected to firmup in 2020, but risks remain tilted to the downside. These include trade tensions, policy uncertainty, geopolitical risks, and a sudden sharp tightening of financial conditions against a backdrop of limited policy space, historically high debt levels, and heightened financial vulnerabilities. Other longstanding challenges also persist. « To protect the expansion, we will continue to mitigate risks, enhance resilience, and, if necessary, act promptly to shoreup growth for the benefit of all. Fiscal policy should rebuild buffers where needed, be flexible and growth-friendly, and strike the right chord between ensuring debt sustainability, supporting demand while avoiding procyclicality, and safeguarding social objectives. In line with central banks’mandates, monetary policy should ensure that inflation remains on track toward, or stabilizes around targets, and that inflation expectations remain anchored. Central bank decisions need to remain well communicated and data dependent. We will monitor and, as necessary, tackle financial vulnerabilities and emerging risks to financial stability, including with macro prudential tools. Strong fundamentals, sound policies, and a resilient international monetary system are essential to the stability of exchange rates, contributing to strong and sustainable growth and investment. Flexible exchange rates, where feasible, can serve as a shock absorber. We recognize that excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will refrain from competitive devaluations and will not target our exchange rates for competitive purposes. We recognize that joint action is also essential to confront broader global challenges. We will continue to support countries’and international efforts to build resilience to, and deal with, the macroeconomic consequences of pandemics, cyber risks, climate change and natural disasters, energy scarcity, conflicts, migration, and refugee and other humanitarian crises. We willalso continue to collaborate to leverage financial technology while addressing related challenges, including from privacy and data security and fragmentation issues. We support efforts toward achieving the 2030 Sustainable Development Goals (SDGs) », says the communiqué of the IMFC. The next meeting of the IMFC will be held in Washington, D.C., on October 19, 2019. 9



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