IMF steps up capacity building in Africa

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On January 9, the IMF launched its third regional technical assistance center in sub-Saharan Africa, based in Libreville, Gabon, will bolster the ability of its eight members to design and implement policies that promote macroeconomic stability, growth, and poverty reduction. Speaking at the inauguration, Managing Director Rodrigo de Rato stressed the importance of strong institutions and the IMF's commitment to helping low-income countries reach the Millennium Development Goals.

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IMF opens new center to boost capacity building in Africa

The IMF inaugurated its third technical assistance center in Africa on January 9. Managing Director Rodrigo de Rato said that the launch was taking place at a hopeful moment: "economic growth in sub-Saharan Africa is likely to exceed 5 percent this year for the third year in a row, and prospects for next year are also bright. Average inflation, excluding Zimbabwe, has been below 10 percent."

Speaking at the opening of the Central Africa Regional Technical Assistance Center (Central AFRITAC) in Libreville, Gabon, de Rato said, "we have learned that technical assistance is most valued when those who offer it work closely with those who seek it, and that it is important to respond quickly when countries need help."

Central AFRITAC joins the IMF's other African technical assistance centers, East AFRITAC in Dar es Salaam, Tanzania, and West AFRITAC in Bamako, Mali (see box).

Financial contributions from the African Development Bank and the governments of France and Germany, as well as the Gabon government's offer to serve as host, made the new technical assistance center possible.

Key priorities for Africa

Boosting technical assistance in Africa supports the IMF's medium-term strategy. The IMF has a clear goal, de Rato said, in "helping low-income countries meet the Millennium Development Goals [MDGs]." The IMF is also updating its debt sustainability framework, which will help its low-income members meet the challenges of debt relief. "Countries have a legitimate interest in using the borrowing space created by debt relief to accelerate their progress toward the MDGs." But he cautioned countries against borrowing to finance expenditures that do not improve their economic position and thereby jeopardizing their hard-won gains.

AFRITACs offer much-needed advice and training

Established: East...