The International Monetary Fund (IMF) offered three key points for African economic growth, this keys offered by IMF top Africa researchers, Celine Allard, in an official International Monetary Fund (IMF) blog post and podcast.
The 3 key points to African economic growth are renewed focus on debt reduction, fiscal policy to raise domestic revenues, and greater exchange rate flexibility.
Celine Allard co-authored the Fund’s regional economic outlook. It was deduced that sub-Saharan economic growth hit only 1.4 percent last year, the lowest level in two decades and well off the five to six per cent rates normally reached. It was also well below the population growth rate.
“This is a quite broad-based deceleration because we see about two-thirds of the countries having slowed down last year, which is quite substantial,” Celine Allard disclosed in the podcast.
“Part of the deteriorated outlook is a reflection of limited policy adjustment in the region,” she said.
It was also deduced that countries in sub-Saharan Africa need to get their budgets in order and diversify their economies and look after their poorest people, the IMF said.
That the IMF’s regional economic outlook, posits that there is no reason why the Africa region cannot have the strong economic growth needed to survival the growing population.
It was also deduced that Africa shortfall in growth are beyond the region’s immediate control, lack of government interventions, low global commodity prices, drought etc
It was also deduced that Africa countries that had consistent growth are Senegal and Ivory Coast.
It was deduced that sub-Sahara needs to focus on economic diversification and improving the secured business climate so that the private sector can feel confident about investing.
That many Africa countries in the region are overly dependent on commodities, getting a huge boost when they are in demand but suffering when prices fall.
A Bank for International Settlements paper in 2016 estimated that the share of commodities of sub-Sahara African exports rose to 76 per cent in 2010–14 from 57 per cent in 1990 to 1999.
“We know that in some countries there are some programmes, but they are usually fragmented and they need to be better targeted”.
Celine Allard also said that the third pillar was to provide social safety nets to protect the most vulnerable in society.