Dr. Ernest Addison, Governor of the Bank of Ghana, has urged the IMF and World Bank to design fiscal reforms that address Africa’s diverse economic needs.
During the 2024 Africa Caucus Meeting with IMF Managing Director Kristalina Georgieva in Washington on Tuesday, October 22, 2024, Dr. Addison addressed the critical fiscal challenges facing African nations, stating that these challenges require urgent and flexible solutions tailored to the continent’s varied economic landscape.
He emphasized that many African countries continue to face significant fiscal pressures, compounded by the lingering effects of the pandemic, geopolitical tensions, and climate-related shocks. According to Dr. Addison, these factors have exacerbated debt vulnerabilities, weakened domestic revenue mobilization, and limited access to international capital markets, leaving many nations in dire need of concessional financing and support.
He called for a more adaptable approach from the IMF, stressing that its support must be flexible enough to respond to the unique economic conditions across the continent.
Dr. Addison also urged the IMF to leverage its influence and engage more closely with regional multilateral development banks (MDBs) to secure concessional financing and grants, particularly to support debt restructuring efforts. This approach, he noted, is crucial for facilitating debt restructuring in countries facing high debt distress.
“We urge the IMF and World Bank to coordinate their support to develop resilient fiscal policies, considering Africa’s diverse needs. Programs should account for regional specificities to ensure sustainable and impactful reforms that do not disproportionately affect vulnerable populations. The IMF should leverage its catalytic role and convening power to deepen dialogue with regional MDBs for additional concessional finance and grants, aiding debt restructuring for members at high risk of debt distress,” he stated.
