IMF, Germany expand capacity development partnership in Africa

The International Monetary Fund (IMF) and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) have strengthened their cooperation on capacity development (CD) in Africa. Germany’s Minister for Economic Cooperation and Development, Dr. Gerd Müller, said that the BMZ will support the IMF’s CD efforts in Africa with a contribution of EUR 15 million. This will make Germany one of the IMF’s largest CD partners in the region, bringing its total contribution to IMF CD in Africa to EUR 30 million over the next three years.

In light of this, IMF Managing Director Christine Lagarde said “Under Germany’s leadership, job creation and poverty reduction in Africa have become strong priorities for the G20. We are pleased to deepen our partnership with Germany through the Federal Ministry for Economic Cooperation and Development and to continue working with Africa policymakers as they build resilient macroeconomic institutions that support investment and sustainable, inclusive growth.”
This expanded CD cooperation will help the IMF to support African policymakers in addressing reform challenges in critical policy areas for increasing investment and job creation. In this context, IMF CD delivery focuses on strengthening institutions for domestic resource mobilisation, improving the efficiency of public spending, supporting financial sector stability and inclusive development, and achieving good financial governance. Effective and resilient institutions will provide a stable foundation for promoting investment, business development, and job creation in Africa.

IMF capacity development forms part of its core mandate and helps governments modernise their economic policies and institutions. In Sub-Saharan Africa, the IMF maintains a network of six regional capacity development centers that anchor IMF support for economic institution building. They are financed jointly by the IMF, external development partners, and member countries.