Africa is hosting the annual meetings of the International Monetary Fund and the World Bank for the first time in 50 years, amid rising tensions between the US and China over their influence on the continent. The meetings, which are taking place in Marrakech, Morocco, from Oct. 11 to 15, are an opportunity for African leaders to seek more investment, representation, and reform from the two Washington-based institutions.
Africa has long been marginalized in the global financial system, receiving only a fraction of the resources and attention it needs to tackle poverty, climate change, and development challenges. The region’s share of the global economy has barely changed since 1973 when Kenya hosted the last IMF-World Bank meetings in Africa. African leaders complain that they have little say in the decisions that affect their countries and that the IMF and World Bank have imposed harsh and ineffective policies on them in the past.
The COVID-19 pandemic has worsened Africa’s economic outlook, with many countries facing debt distress, rising inflation, and weak growth. The IMF and the World Bank have provided some emergency support, but African officials say it is insufficient. They call for more concessional lending, debt relief, special drawing rights allocation, and vaccine access.
They also demand a bigger role in the governance of the IMF and the World Bank, which are still dominated by Western powers. The tradition of appointing a European to lead the IMF and an American to head the World Bank has been criticized as outdated and unfair. African countries want more voting power, board seats, and senior staff positions in the two institutions.
Meanwhile, China has emerged as a major lender and partner for Africa, offering infrastructure projects, trade deals, and political support. According to Bloomberg Economics, China’s lending to Africa has increased fivefold since 2010. The US and its allies have accused China of engaging in “debt-trap diplomacy” and undermining good governance in Africa. China has denied these allegations and defended its role as a “sincere friend” of Africa.
Africa is not interested in choosing sides between East and West but rather in pursuing its own interests and objectives, according to Vera Songwe, a former UN official and a contributor to a report on reforming the global financial system. She said Africa should avoid being drawn into a new “Cold War” competition between the US and China and instead focus on attracting more investment from both sides.
The Marrakech meetings are a chance for Africa to make its voice heard and shape the future of global finance. The continent has many opportunities, challenges, potential, and resilience. As IMF Managing Director Kristalina Georgieva said: “We cannot have a prosperous world unless we also have stable and prosperous Africa.”
Source: BNN Bloomberg
