IMF Presents New Economic Outlook for Sub-Saharan Africa in Lomé

Friday, 14 June 2024 16:53
IMF Presents New Economic Outlook for Sub-Saharan Africa in Lomé

(Togo First) - The International Monetary Fund (IMF) presented its regional economic outlook for sub-Saharan Africa (SSA) in Lomé, Togo, on June 13. The event brought together Togo's financial partners, including the World Bank, the UNDP, the African Development Bank AfDB, the European Union, and the French development agency AFD.

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"Timid and costly recovery”

Themed “Timid and Costly Recovery”, the IMF report outlines future challenges and recommendations to support SSA countries. The report is dated April 2024.

"The subregion is expected to grow from 3.4% last year to 3.8% this year. Macroeconomic imbalances in the sub-region are also being reduced, whether in terms of the countries' deficits in the sub-region, or terms of debt. The report also identifies several persistent challenges. There remains a shortage of financing. It's still difficult for many countries in the sub-region to raise resources on the international markets", said Maximilien Kaffo, IMF resident representative in Togo. The Fund also notes the persistence of exogenous and endogenous shocks, especially climate change, and the uncertainty tied to elections in many SSA countries.

“Overall, the recovery remains very timid”, even if each country has a different context. This slow recovery does not foster a significant rise in per capita income across the region.

Togo to bring down budget deficit to 3% by 2025

The Togolese government broadly shares this view, as Stéphane Akaya, Secretary General of the Ministry in charge of the Economy and Finance, indicated at the opening of the recent meeting.

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"The Government broadly shares this report’s conclusions and recommendations made, which, for the most part, align with the strategic orientations of the Government Roadmap", Akaya noted. He then recalled that Togo seeks to cut its budget deficit to 3% of GDP by 2025. This would require boosting revenues and better managing spending, focusing on priority expenses.

In 2023, Togo signed a new agreement under the Extended Credit Facility (ECF) with the IMF. The move led to a series of disbursements to the public treasury and should help meet the macroeconomic and budgetary targets.

Ayi Renaud Dossavi

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