The Director of the International Monetary Fund’s (IMF) African Department, Abebe Aemro Selassie, expressed significant optimism about Africa’s economic recovery from the fallout of the COVID-19 pandemic during a recent media roundtable discussion.
“Despite the challenging times, we see the potential of returned economic growth in Africa, driven by strong commodity prices, improved sectors of agriculture and services, and better global demand,” Mr. Selassie articulated.
Unprecedented levels of financial assistance have also supported Africa’s journey towards an economic rebound. More than 48 African countries have received IMF support since the pandemic’s genesis, amounting to close to $30 billion in financial assistance. Relative to pre-pandemic levels, this escalated assistance reflects almost a four-fold increase.
However, the director was equally cautious regarding obstacles that still persist. According to Mr. Selassie, the notably slow vaccine roll-out across the continent, identified gaps in recovery finances, and increasing global interest rates could serve as potential threats to the projected recovery.
“It’s important to recognise the continued need for strong economic and governance reforms in Africa for robust and sustained growth,” Mr. Selassie stated, underscoring that while global factors are breaking in Africa’s favour, much work remains on the domestic front.
“The IMF support has been crucial amidst the pandemic, but there still lies an urgent need to secure adequate vaccines for the continent’s population,” he added. This sentiment aligns with the growing global recognition that a full economic recovery is deeply intertwined with achieving wide vaccine coverage.
Africa was one of the regions hardest hit by the economic crisis provoked by COVID-19. The IMF projects that Sub-Saharan Africa will need around $425 billion in additional financing over the next five years to help reinforce the region’s recovery and foster inclusive growth.
The discussion served as an important reminder of the delicate balance that Africa must maintain in order to achieve economic recovery. While the continent benefits from positive economic indicators and continued international support, it must also strive to address challenges, particularly the pace of vaccination, to truly reclaim its economic vitality.
