Beitrag vom 14.10.2022

The Africa Report

IMF’s Selassie: ‘Picking on Africa, which has made zero contribution & needs to electrify, is startling’

By Aurélie M'Bida, Yara Rizk

Over the last 15 years, Africa has become integrated into the global economic fold. As a result, it is no longer immune to volatility in international markets; while the continent was largely cushioned from the fallout of the Global Financial Crisis in 2008, over the last 12 months, rising inflation, interest rate hikes, and broken supply chains, which have wreaked havoc in developed economies, are now taking their toll on Africa.

Layered on top of the economic crisis is a climate emergency, which has caused drought, flooding, and conflict across the continent. The acceleration of climate change has hit Africa hard, exacerbating the current cost of living crisis and plunging thousands of people into poverty.

Cash-strapped economies have more or less been shut out of global international markets, with yields too high for most to consider borrowing this way. Mounting debt obligations during this current economic crisis will only put more pressure on governments as they tackle the cost of living crisis and climate

With so much uncertainty, and dwindling portfolio flows to the continent, the role of multilateral agencies to help prop up the developing economies of Africa is needed now more than ever before. Deals, however, will take time and negotiations require compromise.

In an exclusive interview, Abebe Aemro Selassie, director of the African Department at the IMF sets out the institution’s plan to temper the current crisis and provides a blueprint for Africa’s future growth.

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