International Monetary Fund - The African Mirror

May

2021

Use of $338-million COVID-19 funds questioned

CAMEROON government auditors have alleged ministries and state bodies misappropriated and mismanaged funds from a $338 million national coronavirus response plan, according to a purported leaked summary of their report shared widely online. The government and presidential administration did not respond to requests for comment on the report. A justice ministry representative referred queries to the supreme court, which has authority over the auditing body. Supreme court officials did not respond to requests for comment. The International Monetary Fund has given $382 million in emergency funds to Cameroon since the start of the pandemic and said it was important for…

May

2021

By The African Mirror

IMF mission says Ghana economy rebounding

BUSINESS

RODRIGO CAMPOS A country mission of the International Monetary Fund says Ghana has managed its COVID-19 outbreak very effectively and its economy is rebounding with the support of strong policies. "Policy interventions in 2020 were also critical to safeguard livelihoods and paved the way for a faster rebound of economic activity," said Carlo Sdralevich, the mission head, in a statement following virtual meetings ended on May 12. He said last year's government actions to contain the pandemic also exacerbated pre-existing budget constraints and public debt vulnerabilities. "The 2021 budget's recent policy pivot towards fiscal consolidation is an important step in…

Apr

2021

By The African Mirror

New IMF reserves could fund vaccinations for low and middle-income countries – report

BUSINESS

ANDREA SHALAL MOVES to bolster the IMF's emergency reserves could provide the $44 billion needed to vaccinate 70% of the population in lower- and middle-income countries by the end of 2022, at no added cost to rich countries, a new Rockefeller Foundation report finds. Finance officials from the Group of 20 major economies are expected to back a $650 billion new allocation of the International Monetary Fund's Special Drawing Rights (SDR) this week to help countries cope with the pandemic and its economic fallout. Vaccination rates and economic development are diverging widely across the globe, according to the IMF and…

Mar

2021

By The African Mirror

IMF approves $312.4 mln credit facility for Madagascar

BUSINESS

THE International Monetary Fund's executive board has approved a $312.4 million extended credit facility arrangement for Madagascar to help it cushion the effects of the COVID-19 pandemic and climate-related shocks, the fund said. "The COVID-19 pandemic continues to take a severe human and economic toll on Madagascar, reversing recent social and economic progress, and creating fiscal and external financing needs," Antoinette Sayeh, IMF's deputy managing director, said. "Given that Madagascar remains at a moderate risk of debt distress, the authorities plan to follow a prudent debt management strategy that relies on concessional financing ..." The fund said following its board's…

Mar

2021

By The African Mirror

Cameroon’s Biya is Africa’s oldest president: assessing his 38 years in power

THOUGHT LEADERSHIP

CAMEROON’S President Paul Biya celebrated his 88th birthday recently, making him the oldest president in Africa. He has been in power for 38 years. Birthday celebrations held across the country were met with protest by the opposition, demanding that he step down. So, how has he acquitted himself in office, and what has been his legacy for Cameroon? JULIUS A. AMIN, Professor, Department of History, University of Dayton Cameroonians welcomed Biya when he became president in November 1982. The peaceful transfer of power by his predecessor Ahmadou Ahidjo won Cameroon praise as an example to emulate in Africa, where leaders…

Feb

2021

By The African Mirror

World Bank, IMF to consider climate change in debt-reduction talks

BUSINESS

ANDREA SHALAL The World Bank is working with the International Monetary Fund (IMF) on ways to factor climate change into the negotiations about reducing the debt burdens of some poor countries, World Bank President David Malpass told Reuters in a Friday interview. Three countries - Ethiopia, Chad and Zambia - have already initiated negotiations with creditors under a new Common Framework supported by the Group of 20 major economies, a process that may lead to debt reductions in some cases. Malpass said he expected additional countries to request restructuring of their debts, but declined to give any details. The coronavirus…

Feb

2021

By The African Mirror

IMF chief warns of “lost generation” if low-income countries don’t get more help

BUSINESS

ANDREA SHALAL The head of the IMF has urged advanced economies to provide more resources to low-income countries, warning of an emerging "Great Divergence" in global growth that could risk stability and trigger social unrest for years to come. International Monetary Fund Managing Director Kristalina Georgieva told reporters that 50% of developing countries were at risk of falling further behind, which raised concerns about stability and social unrest. To avert bigger problems, she said rich countries and international institutions should chip in more. She also urged heavily indebted countries to seek debt restructuring sooner rather than later, and to boost…

Jan

2021

By The African Mirror

IMF urges deficit control in Tunisia even as protesters demand jobs

BUSINESS

TAREK AMARA THE International Monetary Fund (IMF) has warned that Tunisia's fiscal deficit could exceed 9% of GDP and urged the country to control energy subsides, transfers to state companies and wages, even as protesters have been demanding jobs and economic development. Violent protests have hit Tunisia at a time of unprecedented economic hardship in the North Africa country that ran a fiscal deficit of 11.5% of GDP in 2020, the highest in nearly four decades. The 2021 budget aims to cut the fiscal deficit to 6.6 pct but the IMF, following a mission in Tunisia, issued a statement calling…

Jan

2021

By The African Mirror

IMF says working intensively with Sudan to move toward debt relief

BUSINESS

THE International Monetary Fund is working "very intensively" with Sudan to build the preconditions for broad debt relief, and will assess progress on a staff-monitored program in March, according to IMF Managing Director Kristalina Georgieva. She told reporters during an online news conference that she was encouraged by strong support from the United States, Britain and other member countries for providing debt relief to Sudan under the Heavily Indebted Poor Countries (HIPC) initiative, and by the determination of the Sudanese authorities. "We do hope as swiftly as possible to present to the membership a strong case on Sudan for HIPC…

Jan

2021

By The African Mirror

IMF approves $34.4 million disbursement for Central African Republic

BUSINESS

THE International Monetary Fund's (IMF) executive board approved a disbursement to Central African Republic of about $34.4 million after completing the first and second reviews of its $115 million loan program, the Fund has said. The country is facing the duel challenges of the coronavirus pandemic as well as a resurgent rebel offensive launched in opposition to elections held last month. IMF Deputy Managing Director Mitsuhiro Furusawa said in a statement that the fallout from the virus appeared to have receded, but the economy remained fragile. "The Covid-19 pandemic has had a substantial impact on C.A.R's economy but appears to…