Africa Hears Pledges But Little Action At IMF-World Bank Talks

Pummelled by debt, poverty and natural disasters, African nations heard many pledges of support but saw little action at the first IMF-World Bank talks to be held on their soil since 1973

Marrakesh, (APP - UrduPoint / Pakistan Point News - 14th Oct, 2023) Pummelled by debt, poverty and natural disasters, African nations heard many pledges of support but saw little action at the first IMF-World Bank talks to be held on their soil since 1973.

The myriad troubles facing the continent were front and centre at the week-long talks in Marrakesh, Morocco, which began Monday and end Sunday.

The managing director of the International Monetary Fund, Kristalina Georgieva, said from day one that holding the meetings in Africa was "symbolically and substantively very important."

"A prosperous world economy in the 21st century requires a prosperous Africa," she said.

In an effort to boost the continent's voice within the IMF, the institution said Saturday its members agreed to give sub-Saharan Africa a third seat on its executive board.

Georgieva said Saturday the agreement "warmed my heart the most."

The move, which will be effective next year, does not increase Africa's voting power within the international lender, whose main shareholders are the United States, China, Japan and western European powers.

For some African officials, a good start would be erasing the mountain of debt that is forcing many countries to spend much of their revenue on paying back interest.

The economy minister of Ivory Coast, Adama Coulibaly, who heads the G24 group of developing countries, said most of the debt is owed to multilateral development banks and the IMF.

"We are warning against a debt crisis that could stifle durable and inclusive growth," Coulibaly said.

More than 20 African countries are either already in or on the edge of debt distress.

In some countries, more than 40 percent of the state budget goes to servicing the debt -- an unsustainable level in countries that need to maintain basic public services such as water and electricity.

But negotiations to restructure debts have become more complicated over the years as new creditors such as China, Saudi Arabia and Brazil have emerged, in addition to private lenders.

Now countries must negotiate terms with China and the Paris Club of creditors, which mostly comprises Western nations with very different policies to Beijing.