IMF Opens Center to Help Build Capacity in Southern Africa

Hub to serve countries generating about half of sub-Saharan Africa’s output

Centers support macroeconomic policy design, implementation

Governance of centers reviewed by independent evaluations of activities

The IMF’s Africa Regional Technical Assistance Center South, which formally opened October 17, is the eighth center set up by the IMF around the world to transfer economic skills and best practices and to train officials—thereby building countries’ policymaking capacity.

IMF Deputy Managing Director Min Zhu, speaking in Port Louis at the opening of the center, stressed the importance of capacity building on a growing continent such as Africa. “Capacity building is critical for effective fiscal institutions, sound financial sectors, and robust macroeconomic statistics, which eventually all contribute to economic performance,” Zhu said.

Zhu stated that strong institutions are critical for sound macroeconomic management and ultimately for economic development and inclusive growth. “Strong institutions are run by well trained individuals with the right skills and appropriate authority. Adequate capacity building thus promotes strong institutions with capable human resources, empowered with relevant know-how,” Zhu said.

The Mauritius regional center is the fourth to be established in Africa. It joins regional assistance hubs opened in Dar es Salaam, Tanzania in 2002; in Bamako, Mali, in 2003; and in Libreville, Gabon, in 2007 in serving a total of 38 African countries. A fifth African center is planned for Accra, Ghana (see table).

Successful model

The IMF’s regional technical assistance centers are widely considered a successful model for capacity building by the international community. A key component to this success is that the technical assistance delivered through these centers is demand driven, responding to the needs of countries, and is closely connected to their poverty-reducing strategies.

Technical assistance services offered by the centers both complements and supplements the technical assistance provided by IMF headquarters and is coordinated with assistance provided by other donors. The centers provide a natural platform for harmonization of regulatory frameworks, and adoption of best practices, as well as overall economic integration.

The African regional assistance centers are part of the IMF’s Africa Capacity Building Initiative launched in May 2002. Responding to calls from African leaders, the initiative helps...