By Modupe Gbadeyanka
A conference on ‘Managing Capital Flows: Challenges for Developing Countries’ was held last week in Livingstone, Zambia by the International Monetary Fund (IMF).
The conference provided a forum for policy makers to share experiences on how best to reap the benefits from capital flows, while managing the risks.
Capital flows to many developing countries have recently declined because of low commodity prices and weak growth.
During the programme, participants agreed that capital flows to developing countries are generally beneficial—particularly in the current context of a much leaner environment—by providing an important source of financing for investments and by helping to maintain foreign exchange reserves.
It was also agreed that the composition of capital flows matters for financial stability and growth, and effective management of the inflow phase of the capital flow cycle remain the best protection against challenges that arise when capital flows reverse.
Zambia’s Minister of Finance, Mr Felix Mutati, and the First Deputy Managing Director of the IMF, Mr David Lipton, said sound policies and macroeconomic stability are key to help reignite high-quality capital flows.
Other speakers on the program included policy makers and senior officials from Cameroon, Chile, India, Kenya, Mozambique, South Africa, and Zambia, as well as distinguished academics, economic analysts, and market participants. Also in attendance were senior officials from other developing and emerging market countries.
Dipo Olowookere 
Adedapo Adesanya