Transcript How is the crisis affecting Africa?

The Global Crisis and
Sub-Saharan Africa
Antoinette M. Sayeh
Director
African Department
Key Messages
2

The impact of the global crisis on Africa will
be severe

African countries are better prepared to
address this shock than in the past, but all
countries will have to adjust to the new
external environment

The IMF is providing scaled-up, more flexible
support to Africa
African Growth Is Slowing Down
Sub-Saharan Africa and the World:
Real GDP Growth
(Percent)
8
Sub-Saharan
Africa
6
4
2
0
World
-2
2000
3
2002
2004
2006
2008
2010
How is the crisis affecting Africa?


4
Countries are affected in different
ways

Countries most closely integrated with financial
market have felt the impact immediately

Impact more gradual but no less severe in countries
primarily affected through real channels
In all countries, fiscal and balance of
payment pressures are mounting
How are African countries responding ?
5

A majority is allowing fiscal deficits to
widen

But limited fiscal space is a constraint
in some countries

Monetary policy has been eased in a
number of countries
How is the IMF helping (1)?
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6
By strengthening our partnership with Africa

In the joint Dar es Salaam declaration, the IMF and
African Finance Ministers committed themselves
to a new, enhanced partnership

We are already making progress on these
commitments

ongoing reform of our policies in low-income countries

efforts underway to enhance the voice and
representation of African countries at the Fund
How is the IMF helping (2)?

By scaling up our financial support

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By making our lending more flexible
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Fiscal targets have been loosened in a majority of program countries

Structural conditionality more focused on core areas of IMF competence
By stepping up our technical assistance effort

7
Since mid-2008, commitments to Africa have increased by a third to
$2.2 billion
Two more regional technical assistance centers in Africa will bring the total to 5
Thank you
8