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IMF Hails Germany’s Commitment to Development in Africa

By Dipo Olowookere

International Monetary Fund (IMF) has expressed its excitement over Germany’s commitment to strengthening its collaboration with it on capacity development.

Germany’s Federal Minister of Finance, Wolfgang Schäuble, and Managing Director of IMF, Ms Christine Lagarde, today signed a Letter of Understanding whereby the German Ministry of Finance will provide €15 million in support of the IMF’s capacity development activities across Africa in the context of the G-20 Compact with Africa.

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The Compact with Africa is an initiative launched under Germany’s G-20 Presidency in December 2016 and aims to boost private investment and increase infrastructure development in Africa.

Resilient macroeconomic institutions are critical for attracting more foreign direct investment. IMF capacity development supports African policymakers’ efforts to address reform challenges in areas such as strengthening domestic resource mobilization, implementing fair tax systems, achieving good financial governance, and fostering financial stability and inclusion, in support of 2030 Agenda for Sustainable Development.

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Initially, five countries are joining the Compact with Africa: Cote d’Ivoire, Morocco, Rwanda, Senegal, and Tunisia, with another group of countries expected to join later this year.

Germany’s Federal Finance Minister Wolfgang Schäuble commented: “Capacity development is important to improve conditions for private investment in Africa. This is why we support the IMF’s very valuable efforts both financially and conceptually.”

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IMF Managing Director Christine Lagarde made the following statement at the signing ceremony: “I want to commend the German government for making the Compact with Africa a G20 priority this year.

“This compact has the potential to mobilize investment and energize inclusive economic growth in Africa. The IMF greatly appreciates the support of the German government for our capacity-building efforts in Africa and we are very pleased to participate in this important initiative.”

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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