The world’s economic elite can be found in Marrakech. This Monday, October 9, begins a week of meetings organized by the World Bank and the International Monetary Fund (IMF). Central banks and finance ministers from around the world are meeting in a context that is still very difficult, particularly for African countries. Inflation, the explosion of public debt, and lack of financing, are the two institutions are called upon to act.
These IMF-World Bank meetings are back in Africa, fifty years after those held in Nairobi, meetings eagerly awaited by the countries of the continent. “There is an emergency”, they say, an emergency to breathe life into very fragile economies, when they are not completely devastated by successive crises.
Over-indebtedness is the number one issue this week, it affects around twenty African countries, in addition to Egypt, stifled by the devaluations of its currency, and Tunisia , whose negotiations for aid with the IMF are at a standstill.
Supporting the most vulnerable
So, the head of the International Monetary Fund, Kristalina Georgieva, set the tone last week: she warned of major damage to come if the financial capacities of the two institutions were not boosted.
The World Bank and IMF are asking more from States; they also hope to convince a private sector that is still too discreet in these investments for emerging countries.
Criticized for their austerity treatment imposed on countries, the two host institutions seek to show a new face in supporting the most vulnerable. Added to this the immense issue of inflation, the road map is extremely dense this week in Marrakech.
Growth prospects and inflation in question
Growth forecasts will also be at the heart of the discussions. For 2023, Africa will escape recession but falling GDP growth, around 3.3%, remains insufficient to help populations improve their standard of living.
This is the great paradox highlighted in the speeches, and in the economic indicators: Africa is one of the most important reserves of future growth, and yet many countries remain economically very vulnerable, particularly given the scale of their public debts. and lack of funding. Inflation is also very high there, as is the case in Ghana or Nigeria.
Africa is at the heart of the speeches and attention of the World Bank and the IMF, which say they want to finance better, particularly the energy transition. The continent which will soon have a third seat on the IMF board of directors. This confirms the institutions’ desire to rebalance.
Morocco absolutely wanted to maintain this meeting in Marrakech
Morocco also absolutely wanted to maintain this meeting in Marrakech, a little over a month after the earthquake which hit the region and left nearly 3,000 dead, because it is very important for the Kingdom to show its organizational capacity. .
There was doubt for a few weeks about the continuation of these assemblies. But after an assessment of the damage, the feasibility, the institutions based in Washington gave the green light.
Moroccan Minister of the Economy Nadia Fettah sees it as “ a sign of recognition ” from the IMF and the World Bank. The country enjoys effective collaboration with both institutions. The IMF also released a new loan of $1.3 billion to Morocco around ten days ago. After the earthquake, Rabat sees these Assemblies as an opportunity for a new start for development financing.
