This is a recurring demand from African countries that is about to be heard at the International Monetary Fund. Its Managing Director, in an interview with Deutsche Welle, extensively discussed the relationship between the international institution and the countries of the continent.
For IMF Managing Director Kristalina Georgieva, sub-Saharan Africa has often been underrepresented in international organizations. Starting from November 1st, the organization she leads will allocate an additional seat to an African member on its governing body. This measure reflects a desire for more equitable representation. The organization also aims to recruit highly qualified African professionals, with a particular focus on women.
Regarding the growing debt crisis in Africa, Kristalina Georgieva explained to DW that the organization is working closely with African countries in three main ways. First, the IMF acts as a source of liquidity and reserves. This includes an allocation of Special Drawing Rights, which helps bolster reserves without increasing debt. During the COVID-19 pandemic, the IMF also provided exceptionally high financing, with loans 16 times higher than during normal periods, to help countries meet urgent needs.
Second, the institution collaborates with countries to identify unsustainable debt situations and promote restructuring through the Common Framework, as well as discussions at the Global Sovereign Roundtable. Countries like Chad, Ghana, Zambia, and Ethiopia have already benefited from this restructuring.
Finally, the IMF is the only institution that offered debt relief during the pandemic, with around $1 billion allocated to the 29 poorest members, most of which are in Africa.
Kristalina Georgieva emphasized that the IMF's main role is to support growth in Africa, as this is the best way to overcome the debt crisis. The IMF Managing Director also discussed the balance between fiscal discipline and growth needs in Africa. She pointed out that IMF programs often focus on fiscal tightening, which can limit governments' ability to invest in infrastructure and social services. Georgieva assured that the organization pays special attention to the budgetary conditions of its member states, as financial stability is a prerequisite for their success. However, she stressed the importance of balancing today's urgent needs with medium-term fiscal sustainability.
The IMF seeks to establish sustainable development and move towards a vision where the organization is seen as a partner rather than a controlling entity.
Before concluding, Kristalina Georgieva delivered a message of hope to the African continent. She did not hesitate to remind that Africa holds immense potential, both for its populations and for the world. With a young population and diverse talents, the continent represents a strategic opportunity in an aging world. She expressed her wish for Africa to prosper for itself and for the rest of the world, emphasizing the IMF's role as a bridge to attract investments to this dynamic market.