Africa’s economic influence heightens following a historic move from the IMF
- Sub-Saharan Africa gains third seat on IMF Executive Board for increased influence.
- The World Bank is set to follow suit, adding a third board spot for African countries.
- IMF projects a brighter economic outlook for Sub-Saharan Africa in 2024.
With a third position on the executive board of the global lender, Sub-Saharan Africa will have a "stronger voice" at the International Monetary Fund, according to IMF Director Kristalina Georgieva to AFP.
Georgieva broke the announcement ahead of the first IMF and World Bank meetings to be held on the continent since 1973, which would take place in Marrakesh, Morocco, the following week.
The IMF executive board, which Georgieva chairs and now consists of 24 members, is in charge of managing the organization's day-to-day operations. With more votes than any other area or emerging country, the United States, which has the greatest economy in the world, is followed in economic importance by Japan, China, and Western Europe.
"I have some good news for Africa. We are advancing a preparation to have a third representative of Sub-Saharan Africa on our executive board," Georgieva stated. "Ultimately, what it will mean is (a) stronger voice for Africa," she added.
The World Bank has also said that it will add a third spot on its own board for African countries. This decision will become official during the meetings in Marrakech from October 9 to 15.
In Morocco, the IMF and World Bank will confront the complex problem of institutional reform in the face of mounting pressure to do more to combat climate change and debt in developing nations.
Recently, the IMF noted that Sub-Saharan Africa is expected to see a brighter economic outlook in 2024, following projections of Africa’s economic downturn in 2023.
Georgieva made the comments in a speech at the Brookings Institution on Wednesday, where she said that growth in sub-Saharan Africa is expected to accelerate to 3.5% in 2024, up from 3% this year. She attributed the improved outlook to a number of factors, including a rebound in tourism and trade, as well as increased investment.
credit: Business Insider Africa