The loss of millions of jobs further hinders the continent’s economic transformation. During a recent virtual meeting, the Ministers of Economy and Finance called on the International Monetary Fund (IMF) and the World Bank (WB) to support their efforts in terms of improving the business climate and financing of Small and Medium Enterprises (SMEs).
According to the Yaoundé declaration made public on August 8, the process of transition to a more diversified economy, driven by the private sector, will require reforms aimed at improving and increasing investments in SMEs. Indeed, during this meeting on the theme “Protecting Africa’s human capital in the face of Covid-19: saving lives, preserving well-being, safeguarding productivity and employment”, the ministers sought support from the IMF and the World Bank in several areas.
With regard to the private sector and employment, several demands were made, namely that the WB should take advantage of the Continental Free Trade Area agreement and support its implementation while promoting the synergy with other organizations; contribute to institutional capacity building and provide technical assistance to structure and manage transactions within the framework of the public-private partnership.
Meanwhile, the Ministers encouraged the International Finance Corporation to step up it’s advisory and financing support to help African countries improve the business climate and reduce investment risk for greater private sector participation.
Regarding the improvement of external aid in this time of health crisis linked to the coronavirus pandemic (Covid-19), the ministers in charge of the Economy wished from the two institutions more boldness in building the capacities and financial resources of countries in order to contain the crisis and face its economic repercussions.
On increasing the provision of health, education, water and social protection services, members of the African caucus stress that the support provided so far to African countries will help accelerate emergency efforts for prevention, detection and response to public health challenges caused by Covid-19.
“We call on the World Bank, in particular the International Finance Corporation and the Multilateral Investment Guarantee Agency (Miga), to continue to support the private sector, in particular with a view to improving the national production of medical equipment. The World Bank should also help countries to obtain medical and food supplies quickly. », Says the statement.
Regarding the consolidation of macro-budgetary policies and governance, participants asked the World Bank and the IMF to continue to support the simplification of procedures in order to strengthen macro-budgetary frameworks and improve domestic resource mobilization. .
They therefore urged these two institutions to strengthen their capacity to respond to different needs through strategic advice and appropriate funding.
