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Opening Remarks at High-Level Virtual Event on ‘Mobilizing with Africa’

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Via IMF (Den Internationale Valutafond)

Opening Remarks at High-Level Virtual Event on ‘Mobilizing with Africa’




Kristalina Georgieva, IMF Managing Director




April 17, 2020















As prepared for delivery

Good morning. Excellencies, Ministers of Finance, Ladies and
Gentlemen—thank you for participating in this important event.

We are here today to work in partnership with Africa and to bring more
attention and more resources to Africa so that the continent can overcome
this unprecedented crisis.

The COVID-19 pandemic has turned our world upside down, causing tragic
loss of life and disrupting our social and economic order. As you will have
seen from our World Economic Outlook, we anticipate the worst global downturn since the Great Depression.

For Africa, we project an economic contraction of at least 1¼ percent this year—the worst
reading on record. Already weak fiscal positions will further
deteriorate at a time when it is imperative to deploy fiscal policy to strengthen health systems and
support vulnerable households and businesses. It is clear that without rapid and adequate international support, the crisis
threatens to reverse the continent’s development gains and damage
prospects for years to come.

This is the spirit of the call made a few days ago by 18 African and
European leaders, among them President Ramaphosa who is with us today,
President Macron, and Chancellor Merkel, under the title “Only victory in Africa can end the pandemic everywhere.”

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Our meeting today on “mobilizing with Africa” is also about international solidarity and rapid
action

to address both the health emergency and its economic consequences in the
continent. The region is hard-hit and

does not have the healthcare capacity, nor the resources, to face this
crisis alone.

Fiscal space is limited, and fiscal financing needs to address the crisis
are large—at least $114 billion for this year. Our
decisive actions have helped to meet some of these needs, but there is a US$44 billion gap we must strive to close.

We have a joint responsibility
to mobilizing with Africa in its fight against the pandemic and its
economic fallout. Let me highlight three proposals:

  • First— Options for rapid and scaled-up financing for Africa.

    The IMF is mobilizing upwards of US$18 billion for Africa in 2020
    . We have temporarily doubled access under our emergency facilities and streamlined our procedures to deliver rapid financial
    support to our members—including responding to over 40 requests from our member countries in Africa. We are also seeking
    to replenish the Poverty Reduction and Growth Trust with the objective to

    triple our concessional lending capacity for low-income countries
    . In this respect, I was very heartened by the membership’s response
    yesterday, with Japan, France, the UK, Canada, Australia and
    several others promising commitments that take us to 70 percent of the resources needed for this goal.
  • Second— Garnering support for debt relief. We wholeheartedly
    welcome the G-20’s decision to suspend debt service payments from
    IDA-eligible least developed countries (39 countries in Africa) to official
    bilateral creditors through end-2020, which responds to a joint call I made
    with David Malpass few weeks ago. I would like to recognize the work done
    by France, Germany, China, and Saudi Arabia in pushing
    through this deal. We have also reformed the IMF’s Catastrophe and
    Containment Relief Trust to provide debt relief to our
    poorest members, of which 23 are in Africa and are seeking additional funds
    to extend the duration of relief.

    We call on private creditors to also be part of the solution
    . Together with the World Bank, we will pay close attention to countries
    faced with high burdens of debt.
  • Third—Identifying policy responses to deal with the
    current shock. The IMF has stepped up advice and knowledge-sharing on policies to address the crisis. We
    support prioritizing policy action to

    strengthen health services and so protect the most vulnerable people
    and parts of the economy
    . We want to see Africa not only managing these challenging issues, but
    also capitalizing upon the opportunities the crisis will present—to become
    more competitive and to leap forward, for example, with e-governance and
    fintech.
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Let me conclude.

Working with Africa, I have no doubt that we will overcome this
crisis and ensure that Africa will become the most dynamic region
in the 21st Century
.


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Meera Louis

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson








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