The International Monetary Fund (IMF) and the World Bank are returning to Africa for their annual meetings after a break of half a century. The meetings, scheduled to take place in Marrakech, Morocco, are drawing global attention to the pressing needs of the continent.
Checks by News About Nigeria revealed that the last time Africa hosted these meetings was in 1973 when then-World Bank President Robert McNamara called on wealthy nations to exhibit more generosity toward the poor.
Since then, Africa has witnessed substantial changes, but its need for investment to combat poverty and confront the climate crisis remains as urgent as ever.
One of the key factors driving this renewed focus on Africa is the escalating rivalry between the United States and China, which has substantial implications for the continent. China’s lending to Africa has surged fivefold since 2010, while the World Bank’s funding has grown at a slower pace. Africa now faces mounting financial challenges, including rising interest rates and weakening currencies.
African leaders are united in their call for increased investment from both the East and the West. They emphasize that the choice should not be about picking friends and foes but rather about advancing the continent’s interests and objectives.
Vera Songwe, former Executive Secretary of the United Nations Economic Commission for Africa, and now a senior fellow at the Brookings Institution, echoes this sentiment, warning against Africa becoming entangled in a new “Cold War” competition between the US and China.
Despite facing a recent earthquake in Morocco that claimed thousands of lives, the determination to proceed with the October meetings in Marrakech underscores the IMF and World Bank’s commitment to the region’s relevance.
The meetings are taking place amid ongoing violence in the Middle East, with Morocco calling for an emergency ministerial meeting of the Arab League Council to address the situation.
A central theme of the meetings will be the push to expand the World Bank’s resources to provide concessional credit on a much larger scale. The ability to offer affordable financing is crucial to tackling poverty, addressing climate change, and meeting the demands of Africa’s youth for development.
The Biden administration’s request for $2.25 billion in World Bank funding from Congress, which could potentially unlock up to $25 billion in additional lending, signals a promising step. If other wealthy nations follow suit, including private capital, the total effort could reach $100 billion.
However, Africa has also turned to China, which now holds about 10% of sub-Saharan Africa’s foreign debt. Despite this, the scale of financing required far exceeds what Africa has attracted from both sides combined.
Calls for reform within the IMF and World Bank are growing louder. African nations are urging these institutions to be more responsive and inclusive, allowing African nations to have a direct say in decisions that affect their reality. This includes challenging the tradition of having a European lead the IMF and a US citizen helm the World Bank.
As these meetings unfold, Africa’s leaders hope to chart a path forward that not only addresses the continent’s immediate financial needs but also sets the stage for a more prosperous and stable Africa in the future.
