The countries of sub-Saharan Africa are experiencing a new serious shock of an exogenous nature, notes the International Monetary Fund (IMF).
Russia’s invasion of Ukraine has caused a spike in food and fuel prices that threatens the region’s economic prospects.
This new blow might not have come at a worse time: the recovery of growth was beginning and the leaders were beginning to address the social and economic consequences of the COVID-19 pandemic and other development problems. .
The IMF representative in Togo, Maximilien Melou, presented Thursday in Lomé the report on the regional economic outlook, produced by the institution last April.
‘The current context is marked by the crisis in Ukraine which is coming as a result of the covid-19 crisis which has drastically affected the fundamental parameters of the economies of the sub-region, thus limiting the room for maneuver that countries have to respond. to these shocks. The proposed recommendations are of two kinds. Short-term recommendations which initially consist of trying to control and limit vulnerability to debt. Also provide targeted subsidies for the most vulnerable populations. The second short-term priority that the report identifies is being able to manage the trade-off between inflation and growth,’ Mr Melou said.
For Tchasso Kpowbie Akaya, Permanent Secretary in charge of Reforms at the Ministry of Economy and Finance, measures can be taken to mitigate the shocks.
He discussed ways to reduce the cost of energy, reduce inflation and boost local agricultural transformation.
The important thing is to continue to finance the economy in a significant way, he stressed.
For his part, Agbenoxevi Kofi Paniah, Secretary General of the Ministry of Economy and Finance, who represented Minister Sani Yaya, and who chaired the meeting, indicated that despite a difficult context, Togo had managed to reach a growth rate of 5.5% in 2021, once morest a forecast of 4.8%.
The WAEMU zone has been very resilient in terms of monetary policy and therefore rates continue to be fairly stable and sustained to facilitate financing and increase the capacity of the private sector to invest.
To strike the balance between curbing inflation and stimulating growth, central banks have a central role to play.
The international community must take action to alleviate the food security crisis.
In their recent joint statement, the IMF, World Bank, United Nations World Food Program and World Trade Organization called for emergency food stocks, financial assistance, including in the form of grants, an increase in agricultural production and the removal of barriers to trade, among other measures.
For some African countries, restoring debt sustainability will require debt reprofiling or outright public debt restructuring, the report points out.
