Africa Forward Summit Discusses Economic Resilience and Global Imbalances

Participants highlighted demographic differences between aging and youthful societies and the concentration of capital in the former group. Speakers noted that countries with large deficits absorb a disproportionate share of financial resources, limiting capital availability elsewhere. They said African nations should make better use of domestic savings for growth-enhancing investments.

Officials stated that building economic and social resilience requires strong institutions and sound policies to support private sector-led growth. They called for credible macroeconomic policies, steps against corruption, and reforms to reduce regulatory barriers.

Participants said eliminating tariff and non-tariff barriers under the continental free trade area could raise income per capita by more than 10 percent. They also urged restructuring unsustainable debt and shifting toward equity financing while developing deeper capital markets.

The IMF has expanded concessional lending to Africa from $8 billion before the COVID-19 pandemic to $36 billion currently. Officials said channeling of $109 billion in special drawing rights has allowed greater support as official development assistance declines.

The organization has established a third African chair on its board and increased focus on the continent in its work. Speakers listed Benin, Côte d'Ivoire, Egypt, Ethiopia, Ghana, Morocco, Rwanda, and Zambia as examples of countries pursuing homegrown reform programs.

They said closing half the gap with emerging market economies in regulation and governance could raise sub-Saharan Africa's output by up to 20 percent within a decade.