{"id":44115,"date":"2022-10-15T08:09:04","date_gmt":"2022-10-15T08:09:04","guid":{"rendered":"https:\/\/www.withinnigeria.com\/broadnews\/?p=44115"},"modified":"2022-10-15T08:09:04","modified_gmt":"2022-10-15T08:09:04","slug":"food-insecurity-should-be-policy-priority-for-african-govts-imf","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/broadnews\/2022\/10\/15\/food-insecurity-should-be-policy-priority-for-african-govts-imf\/","title":{"rendered":"Food insecurity should be policy priority for African govts – IMF"},"content":{"rendered":"

Mr Abebe Selassie, the Director, International Monetary Fund (IMF)<\/a>, <\/strong>African Department, says tackling food insecurity should be the first policy priority for governments in Sub-Saharan Africa (SSA).<\/p>\n

Selassie said this in his opening remarks at the News Conference on the October Regional Economic Outlook for SSA at the IMF\/World Bank Annual Meetings held in Washington DC on Friday.<\/p>\n

According to him, the region\u2019s economic outlook showed that growth is expected to slow down sharply from 4.7 per cent in 2021 to 3.6 per cent in 2022.<\/p>\n

He said that growth is expected to remain subdued in 2023, averaging only 3.7 per cent.<\/p>\n

\u201cThe most recent turmoil is just the latest in a series of shocks over the past few years, all of which have taken a toll on the region\u2019s policy space. Rising food and energy prices are striking the region\u2019s most vulnerable. \u201d<\/p>\n

Selassie said public debt had reached almost 60 per cent of Gross Domestic Product (GDP),<\/strong><\/a> leaving the region with debt levels last seen in the early 2000s.<\/p>\n

\u201cIn fact, 19 of the region\u2019s 35 low-income countries are now in debt distress or at high risk of distress, and inflation rates are in double digits for 40 per cent of the region\u2019s economies.\u201d<\/p>\n

\u201cAgainst this backdrop, and with limited options, many countries find themselves pushed closer to the edge.\u201d<\/p>\n

He said for authorities, this was the most challenging policy environment in years, adding that policymakers in SSA need to deal immediately with economic and humanitarian crises as they emerge.<\/p>\n

Selassie said policymakers should do this while also building buffers and reducing vulnerability to future shocks as best they could.<\/p>\n

In addition, he said the region\u2019s prosperity would require high-quality growth, so policies must also set the stage for a sustainable recovery.<\/p>\n

\u201cWith these goals in mind, the October Regional Outlook emphasises four policy priorities.<\/p>\n

\u201cThe first priority is to tackle food insecurity, protecting the most vulnerable with a focus on channelling scarce resources to those who need them the most.<\/p>\n

\u201cNext, authorities will need to continue consolidating public finances amid more difficult funding conditions.\u201d<\/p>\n

Selassie said this would require continued revenue mobilisation; a tighter focus on critical spending priorities, increased efficiency, and prudent debt management within credible medium-term fiscal frameworks.<\/p>\n

He said the next priority was for authorities to take steps to contain inflation, by cautiously and gradually increasing interest rates, without jeopardising the economic recovery or undermining longer-term credibility.<\/p>\n

Selassie said lastly, policymakers should continue setting the stage for high-quality growth, in the context of accelerating climate change.<\/p>\n

\u201cInvestment in resilient and green infrastructure is critical, not least to take advantage of the region\u2019s formidable endowment of renewable energy resources.<\/p>\n

He stressed the critical importance of international assistance, saying budget support including official development financing and humanitarian assistance had been declining over the past two decades.<\/p>\n

Selassie said this had been going on while the region\u2019s immediate and longer-term development needs had been rising, particularly in areas such as food security and climate change.<\/p>\n

\u201cMore is needed, and as we look forward to the forthcoming UN Climate Change Conference in Egypt (COP-27), it should be noted that increased support including more concessional finance is necessary.<\/p>\n

\u201cThis is for SSA to pursue a low-carbon and climate-resilient growth path.\u201d<\/p>\n

He said the IMF was helping to catalyse new capital inflows by boosting local capacity on climate strategy issues while flexibly expanding its lending facilities.<\/p>\n

Selassie said the IMF was expanding its lending facilities with its Resilience and Sustainability Trust to provide affordable financing to address longer-term structural challenges, including climate change.<\/p>\n

\u201cI will note in this regard that we have recently come to a Staff Level Agreement with Rwanda on a potential arrangement under this facility.<\/p>\n

\u201d Most recently, we have inaugurated a new food shock window under our emergency lending facilities, which will help qualifying members mitigate the impact of the current emergency.<\/p>\n

He said the IMF had also provided close to 50 billion dollars in financial support to SSA since the beginning of the pandemic.<\/p>\n

\u201cWith help, SSA will be poised to fulfil the promise of the African century, contributing to a more prosperous, greener future for the region and the world.<\/p>\n","protected":false},"excerpt":{"rendered":"

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