IMF ready to help Africa weather Middle East shock—Zeidane

The International Monetary Fund’s new Africa chief, Zeine Zeidane, said that conflict in the Middle East has created difficulties for sub-Saharan Africa but reaffirmed the fund’s ‌commitment to aiding nations under economic strain.

Zeidane, who assumed his role as Director of the IMF’s African Department on May 1, oversees operations and engagement with 45 countries across the region.

“My immediate priority is really to help countries in the region to weather this shock,” Zeidane said at a media briefing.

The IMF has already reached staff-level agreements to provide augmented financing in response to the conflict’s effects for Burkina Faso, The Gambia and São Tomé and Príncipe.

For Ethiopia, which has a large IMF programme in place, Zeidane said the fund accelerated about $200 million in financing.

Zeidane warned that disruptions linked to the Middle East conflict could take months to resolve, noting that a ceasefire was already in place but that Gulf nations had indicated ‌it typically takes six to seven months for production and exports to resume fully.

He added that the Middle East’s role as a significant exporter of fertilisers would have far-reaching implications for Africa’s food security and production costs.

Despite immediate challenges, Zeidane expressed optimism over sub-Saharan Africa’s long-term prospects, noting that prior to the current crisis, the region was among the fastest-growing globally and had made strides in fiscal consolidation.

“The future, the next growth engine for the world, will be Africa,” he said. “We need to support Africa to unlock its potential.”

Zeidane, who began his IMF career in 2012, previously served as Mauritania’s prime minister, central bank governor and economic adviser to the president. He succeeded Abebe Aemro Selassie, who retired from the IMF in May.