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Economic outlook for Sub-Saharan Africa is encouraging – says IMF


African economies are dealing with an enormous challenge after the last international economic disaster hit many African nations quite onerous. Many are still struggling to get well. Final week, the IMF held a press conference.

“In many of these countries public investments has helped spur higher growth, while also, of course, translating into an increase in public debt levels, so there is a need to strike a better balance between public debt increase on one hand, and the continued investments that are needed in public investment,” says the IMF.

This is a transcript of that press conference which occurred in Washington, on the 12 April 2019, led by Abebe Aemro Selassie – Director of the IMF African Division, and Lucie Mboto Fouda – Senior Communications Officer at the IMF. This is what they stated:

FOUDA: Good morning everyone, and welcome to this Press Conference by Mr. Abebe Aemro Selassie, whom you all know, the Director of the African Division at the IMF.

I’m Lucie Mboto Fouda, with the Communication Department.

We are additionally launching as we speak the Regional Economic Outlook for Sub-Saharan Africa, which we posted yesterday beneath embargo. And that has now gone stay. So, I belief you had access to it.

Abebe will supply a couple of opening remarks, after which he will probably be completely happy to take your questions. Abebe?

SELASSIE: Thank you, Lucie. An excellent morning to you all, thanks for becoming a member of us this morning. We are launching our Regional Economic Outlook, I’m just coming from a session the place we launched that, a couple of remarks from my finish earlier than maybe turning to your questions.

The Sub-Saharan Africa financial system continues to recuperate when it comes to economic progress. This yr we expect progress to speed up to 3.5 % from three % last yr. But these regional common numbers mask various difference when it comes to outcomes across the area.

Particularly, some 21 nations are expected to grow at 5 % or extra this yr, and so, you realize, with per capita revenue will increase which are markedly bigger than many nations in the rest of the world. And these economies which might be growing fast are typically the more diversified economies.

Nonetheless, there are in different set of nations, round 24, mainly resource-dependent economies which might be dealing with sluggish progress in the close to term and are seeing slower enhancements in requirements of livings. This group consists of a few of the larger economies within the region, the likes of Angola, Nigeria, and South Africa, which account for greater than 50 % of the region’s output.

External and home developments are having a betting on the financial outlook. On the external entrance maybe an important elements have been the volatility and international monetary circumstances, in addition to the volatility in commodity costs which are posing a challenge for policymakers.

Domestically, one strain level stays rising public debt vulnerabilities, these are elevated in some nations, and posing a problem. The rationale for the increase in debt ranges tends to be very country-specific, for some it is resulting from addressing the massive infrastructure wants. In others it’s been the effect of the commodity worth shock that hit nations between 2014 and 2016. And yet in others it’s been procyclical policies which have led to the marked improve in debt ranges.

Wanting forward, we see principally two broad implications for insurance policies. First within the fast-growing economies, the likes of Benin, Ethiopia, Ghana, Senegal, there is a necessity handy over the reins of progress from the general public to the personal sector.

In lots of of these nations public investments has helped spur greater progress, whereas additionally, in fact, translating into a rise in public debt ranges, so there is a have to strike a better stability between public debt improve on one hand, and the continued investments which might be needed in public investment.

In the slower-growing economies, the likes of, as I just talked about, Angola, Nigeria, South Africa, there is a have to pursue reforms to facilitate economic diversification, and tackle stay ing financial imbalances, many of these instances, personal investments remain weak, and a robust focus is needed to deal with the constraints which might be holding such investments again.

One improvement that we’re very hopeful will facilitate progress, is elevated commerce integration within the region. We’re very inspired by the progress that has been made in the direction of the African Continental Free Commerce Space. Once completed the trade agreement will set up a market of 1.2 billion individuals, with a mixed GDP of $2.5 trillion.

The advantages might be substantial, notably if nations deal with the non-tariff bottlenecks to commerce, together with by investing in infrastructure, decreasing logistical prices and enhancing commerce facilitation.

What is fascinating, we expect, is that intraregional exports in Africa are more diversified and have a better know-how content material, than Africa’s exports to a lot the remainder of the world.

And simply to offer you a few numbers on this, 40 % of intraregional commerce is accounted for by manufactured goods, whereas the region exports to the world 75 % of such exports are typically minerals, the likes of crude oil, and different commodities.

Nonetheless, one thing to note in fact, is that, to ensure the advantages of intraregional integration are shared by all, policymakers must be aware of the adjustment costs that integration might entail and transfer swiftly to deal with those.

In addition to these extra medium-term challenges that I’ve been noting we see, you recognize, nations in fact have been hit by vital shocks. Two such examples I need to highlight. I feel the primary is the safety challenge.

General the conflict levels in the region are typically much decrease than in the ’90s, and even early 2000s. However nations within the Sahel and Lake Chad Basin are dealing with appreciable security threats, and this region (inaudible) financial outlook, we now have executed some work wanting at the current tendencies, and the financial impression that conflicts are having.

This is a problem of great concern, and we are discussing with nation authorities how greatest we will reduce their diversion of assets away from much needed improvement spending.

One other example of the sort of shocks that policymakers should deal with in fact are weather-related shocks. As you understand, Cyclone Idai has a devastating influence in Southeast Africa, leading to the significant lack of life and injury.

We are doing every thing we will to help the nations which were affected. Simply to provide an instance, we’ve got moved very rapidly to help Mozambique by means of a speedy credit score facility. We anticipate the Government Board to think about this request as soon as next week, within a month of the hurricane hitting — the cyclone hitting Mozambique.

In Zimbabwe, yesterday we announced a staff-monitored program which can help the government’s economic insurance policies, and we’re having in depth dialogue with authorities.

And then, Malawi, we’re in discussions with authorities to offer further help by means of the prevailing ECF arrangement we’ve got with them.

Before I end, I want to stress that Sub-Saharan Africa remains a region of large economic potential, and while the global setting is more and more unsure, there is a lot that the nations are doing and may do to sustain very high rates of progress, which we are certain will translate into continued enhancements and improvement outcomes.

I’ll now turn to — elevating any questions you might have and I’m going to — a replica of the report that we’ve just revealed can be out there as you go out, outdoors. Thanks so much.

FOUDA: Sure. Let me begin here.

QUESTIONER: I have two questions associated to Mozambique. You talked about the credit facility due to the cyclone. I’m wondering in case you might inform us how a lot you are looking at. And relating to Mozambique, a few of the civil society organizations have stated that Mozambique shouldn’t pay the debt to Credit Suisse where some officials have been involved on this corrupt dealing for the loans, I want to know what’s your opinion about that.

And in addition, in the event you can inform us what’s your opinion concerning the battle for the extradition of the Former Minister of Finance, Manuel Chang, between the USA and Mozambique. And on Angola, in the event you might tell us, what are the primary priorities that you simply want to see the Angolan Government implement? Thanks.

SELASSIE: Thanks. So, the speedy credit score facility with Mozambique, I consider is of the order of $120 million, and as I mentioned earlier, we hope to current this request to the Government Board. We now have sent the request to the Government Board, and we hope the Board will think about it as early as subsequent week.

Close to outstanding debt that Mozambique has. As we now have famous someday again, Mozambique’s debt degree had turn into unsustainable in the wake of the revelation that there was vital borrowing that hadn’t been disclosed. What we have now been calling principally is to seek out ways for the federal government to ensure that debt turns into sustainable.

The federal government and the dialog they’re having with their collectors, in fact, to seek out methods of making certain that debt reverts to sustainable ranges. Much in the same means on the query of the judicial inquiry that’s going, it’s beyond my area of competence and can’t comment.

On Angola, we’ve a program with which we are supporting the federal government’s adjustment efforts. Frankly, this system has been off to a really, excellent begin. The authorities are making very robust strides in the direction of addressing macroeconomic imbalances that they’ve been confronting for the last couple of years. We’ve been very impressed by the extent and depth of the reforms that they’ve been engaged in.

We expect that going forward, one of the things that we need to do higher, we need to strengthen, is introducing social protection packages to attempt to make it possible for the adjustment can be progressive and keep away from antagonistic effects on the poor particularly.

We also are wanting forward to completing the reforms which are wanted to facilitate rather more competitors in product markets in Angola, which (inaudible) to be closed. These kinds of structural reforms we feel shall be essential to spur progress. So, we’ll be working on these issues in the coming months.

FOUDA: Sure, let me take the one within the middle right here and get back to you.

QUESTIONER: I have two questions. Should you take a look at the report by Vera Songwe, which was the chief secretary of UNECA, she stated for the Africa free commerce area to succeed, African nations should diversify their exports. But should you take a look at the document since 1990, only three nations have succeeded in doing that. Do you agree that this is a type of answer that might be working?

Another particular question on Ethiopia. The IMF projected 7.7 % GDP gross for 2019. However in case you take a look at the country, there is inner pollical crisis, chaos, and growing battle and uncertainty that erodes business confidence. And where do you assume the social progress comes from in a state of affairs like this? Thank you.

SELASSIE: Thank you. On the AFCTA. So, you already know, one of many hanging things, as I just noted, about intra-Africa trade, is that it tends to be rather more in processed items quite than natural useful resource exports. One cause for this in fact, is that various nations tend to supply comparable natural resource exports and, you realize, in order that they don’t have to import them from another African nation and will as an alternative export them to the rest of the region. But with one another, they have a tendency to change far more processes goods.

I feel just to offer you one instance, I imply the nation I know nicely, Uganda, you already know, Uganda, when it’s exporting to Rwanda to DRC to South Sudan, tends to export, you realize, constructing materials, bottled water, other bottled drinks, maize flour that is processed, and the like. So, what the AFTCA we’re very hopeful will do, will facilitate avenues for larger diversification, more, you realize, wider markets by which nations can produce and export in the direction of.

So, we share the ECA’s assessment, and our report confirms this is one of the dimensions which shall be necessary from the AFCTA.

On Ethiopia, I imply Ethiopia has been one of many quickest growing economies in the area during the last many years in fact. An essential driver of this progress has been vital public funding. And as I noted earlier, you understand, this investment continues and is spurring progress. What we’re wanting for in economies like Ethiopia but in addition the likes of Kenya, Senegal, the place public funding and infrastructure has been an necessary driver to progress, is handy over the reigns of progress from the public funding more in the direction of facilitating personal investment. And this handover of the reigns of progress is I feel the coverage precedence.

FOUDA: Let me take one query on this aspect of the room, and then I’ll get to you guys. Yes.

QUESTIONER: My query is, in your local weather outlook report, you projected that Ghana could possibly be the quickest growing financial system in Africa. The priority right here is that what’s your recommendation to authorities to ensure that this progress comes along with creating jobs for the youth? And, we’ve completed this system with the IMF. What’s your advice to government to ensure that we stay on monitor and perhaps in four years or even two years’ time, we don’t come again to the Fund again for another coverage credit (inaudible) or help or even program? Thanks.

SELASSIE: So, I feel the jobs agenda is one not unique to Ghana. I feel all nations within the region however frankly, beyond the area additionally, have the problem of needing to create, you understand, well-paying jobs for the job market entrance and naturally, individuals wanting to modify jobs. So, this is a broad agenda.

What can nations do, you recognize, and what can Ghana do particularly? I feel continue to just remember to spend money on human capital, I feel is essential. Investing in faculties, investing in the well being of the inhabitants I feel actually continues to be an important driver, you realize, to have individuals getting into the job markets having the required expertise, the required flexibility to be able to do the jobs of the longer term. Making sure that you simply don’t have any distortions coming from the general public sector when it comes to macroeconomic aggregates, I feel may even be an important goal.

Again, facilitating progress for personal investment. Identifying, as I noted earlier, tackling the constraints, the limitations to non-public funding can be essential. Making, you already know, the hundreds and hundreds of casual corporations. You realize, finding ways for those corporations to develop and enter into the formal sector. Eradicating obstacles. Removing the burdens that they face in rising. Entry to credit. All of these sort of micro-reforms are going to be essential for the job’s agenda in making sure that this progress is labor intensive enough and absorbing sufficient, you already know, and creating enough jobs.

On post-IMF program insurance policies in Ghana, I mean, you already know, we’ve seen a big improvement, you understand, in narrowing of the macroeconomic imbalances that was confronting the Ghanaian financial system in 2014-15. I feel staying on this course shall be what is essential. Ensuring that fiscal deficits remain manageable.

Ensuring that the assets which are being borrowed proceed for use on tasks of the very best rates of return. Making sure that the calibration of monetary coverage remains one which’s according to retaining inflation at bay, the change fee at competitive levels. You already know, the type of issues that the federal government has been pursuing during the last couple of years. And staying that course is what is essential.

I feel, you understand, you have got policy makers that know that very properly. We like the reforms which were made to strengthen institutions. The brand new fiscal counsel that’s coming into being. So, making sure that these establishments remain strong, efficient, and policies are continuing in the course that they’ve been within the last couple of years.

FOUDA: Let’s go to this aspect of the room. Gentleman within the first row, please.

QUESTIONER: Nigeria and I consider a number of other African nations have had to endure due to the outflow of illicit funds. I need to know, what sort of commitment can we have now from the IMF within the effort to repatriate some of these funds? Thanks.

SELASSIE: So, just to very clear, I feel the entrance and middle position in fact for ensuring that economic policies are applicable limiting and narrowing the scope for such illicit outflows remains the task for policy makers in our nations.

From the IMF aspect, we in fact provide numerous coverage recommendation. And more just lately, we’ve additionally launched governance and corruption — because that’s what help improve governments and deal with corruption. Should the government be interested, in fact, we’ve advice on tips on how to strengthen public finance administration frameworks, how one can strengthen accountability establishments that we will supply and work with the federal government.

General, I might say that, you realize, during the last couple of years this is an area where we’ve President Buhari’s administration putting fairly a bit of emphasis and proceed to strengthen this because I feel the duty dealing with Nigeria.

FOUDA: Woman within the middle over there please.

QUESTIONER: I just needed to know your general evaluation of the Gambia understanding that the nation is making an attempt to get well after a decelerate in 2016 and it also went via a political impasse most of you recognize in that yr so lots of things have changed including the federal government. And so, we do know that the government is making an attempt to actually re-strategize its coverage and the IMF also advised that we to revisit their fiscal policies simply so progress is secure and that is sustainable.

And so, we’ve also seen that the federal government has taken greater than half of its income to fixing debt and we’ve additionally seen a rising taxation particularly in certain income producing avenues also on the personal sector. So, simply needed to know your general evaluation of the nation within the coming years. Thanks.

SELASSIE: Thank you. So, Gambia, in fact, has been going by means of a reasonably troublesome political transition. It has been a period of quite a bit of uncertainty and, you already know, after a very long interval where there was very restricted transparency in public accounts. We’ve moved to a interval the place there is a bit more transparency there and we’re joyful to be supporting the federal government’s reform efforts via a employees monitored program.

We simply agreed on a second employees monitored program lately with the federal government and we hope that this can transition into us with the ability to present financing going forward. One constraint in our means to offer financing has certainly been the necessity to ensure that there is a fiscal path, which strikes a healthy stability between continuing to make assets out there for investment and well being and schooling and infrastructure that the nation wants much versus avoiding an unsustainable debt state of affairs. I feel very encouraging progress on this entrance in current and, you already know, we hope to assist the government proceed to strike this wholesome stability within the coming weeks.

FOUDA: Let me get the woman in white here please.

QUESTIONER: I need to ask you about two Portuguese talking nations in Africa. In the first place, Angola, which has an extended fund facility agreed with the IMF. How is it going? Additionally, Angola had the visit of IMF mission very just lately they usually have been going to continue the works here in Washington.

And the second query is about Guinea-Bissau additionally general evaluation about this nation, which is an underdeveloped country and really poor and we could have legislative elections. What is your overview for the subsequent coming months for Guinea-Bissau?

SELASSIE: So, with respect to Angola, as I mentioned earlier, we’ve an prolonged entrance facility since last yr, which there are compressive reforms being pursued. Angola is at an inflection level when it comes to the financial coverage setting. They’ve been really hit very, very onerous by the decline in commodity prices, in fact, and have been adjusting to that during the last couple of years.

The primary set of adjustments the nation has been doing actually has been extra by means of compressing spending moderately than a more systematic method of doing their coverage reforms. So the work of this system beneath the AFF — the reform program that the AFF is supporting, authorities program, is making an attempt to put a extra orderly fiscal adjustment in place additionally facilitate for their reforms in the monetary and trade price space and in addition a variety of (inaudible) reforms.

We’re pleased with the progress that has been made to date and, you understand, we are encouraged with the progress that has been made thus far and we hope that that may proceed within the coming months.

With Guinea-Bissau, as you famous, this country which we have now been supporting with the program, its fragile financial system faces quite a bit deeper developmental challenges. We proceed to have dialogues with the government including enhancing the well being of the monetary sector, which we expect is an important coverage priority in the meanwhile and we’ll proceed to work with them in the coming months additionally.

FOUDA: Yes. Let’s take first row right here.

QUESTIONER: The Trump administration is one in that the Chinese funding in Africa whereas is good for infrastructure is also can end up to develop into dying lure and a (inaudible) takeover. We now have instances in Sri Lanka especially as a result of the loans from China find yourself in the palms of very corrupt authorities, unaccountable government. How massive a menace is the Chinese language funding and enlargement in Africa.

And, finally, yesterday the new (inaudible) president the alarming statistic about Africa. He stated by 2030 nine out of ten extremely poor individuals on the earth shall be Africans, which is bit shocking seeing all of the poor in Asia and in the U.S. and in Europe. Is the IMF seeing the identical thing? And, lastly, when it comes to statistics, we see the IMF has three.5% projection this yr and the World Financial institution has a special statistics. How does it work? Why do you could have totally different statistics? How do you get to it?

SELASSIE: Okay. A whole lot of questions there. First, on the debt difficulty, as I flagged earlier, you already know, in some nations I feel it’s necessary to know that, you understand, with many coverage challenges and notably for the region as numerous as (inaudible) Africa, it is essential to think about them in a country specific context. So, the rationale why debt has gone up defers from country to country and the sources of financing also are typically nation specific.

Our advice, in fact, all the time is to make it possible for nations are (inaudible) a wholesome stability between on the one hand proceed to deal with their improvement aims and second, avoiding the sustainability considerations. In some instances, in fact, these sort of debt issues can arise from borrowing from bilateral creditors, but in different instances it comes from borrowing from business banks. Anyone requested me a query about (inaudible) not so way back. Proper. The difficulty with debt sustainability had arisen on the context of borrowing from business banks which might be hidden in that case.

So, the difficulty of debt transparency is not distinctive to China, but in addition to all borrowing that our nations are enterprise and what’s necessary, again, is making sure that complete borrowing levels remain in keeping with debt servicing capacity. Failing to try this, in fact, is very problematic.

On the outlook for the area when it comes to addressing poverty charges, you realize, in fact this is exactly why we have now this dialogue at these conferences. With policymakers, you understand, the brunt of our work is to make it possible for the area continues to develop as robustly as potential to create the tens of millions of jobs that our economies have to keep away from, you realize, wore outcomes notably given the demographic challenges that the region faces.

So, this is exactly what policymakers, institutions like the IMF, World Bank are all engaged in to be sure that we will facilitate assist economies develop as robustly as attainable to scale back present poverty and avoid poverty levels deteriorating any further.

So, your last question was on — I’m unsure what discrepancy your talking about frankly. Yeah, I mean, you understand, the last numbers I noticed from the World Financial institution for (inaudible) Africa was 3.6. Ours are three.5. The composition between the two institutions differ slightly. You understand, one or two nations extra there than right here. So these sort of things. Or the timing when projections have been made typically account for any marginal variations that there are.

FOUDA: Let’s take the question right here please.

QUESTIONER: I am going to talk French. Query on CEMAC.

SELASSIE: You recognize, in my opening remarks, I famous concerning the impacts that the commodity worth decline has had on a number of the areas commodity exporters.

5 out of the six CEMAC nations in fact are oil producers they usually have been hit very, very arduous by the decline in oil prices that we noticed in 2014 to ’16. We’re working with the nations to attempt to avert, you understand, we moved in a short time to help nations avert a disaster. And, you recognize, we’ve got packages that we’re supporting the authorities endeavors with.

As you noted, 4 out of the six nations we’ve packages with. That is Cameroon, Gabon, C.A.R. and Chad. And the efforts that nations have been making, these four nations but in addition the reforms that the financial institution has been pursuing and as well as actually some efforts that Republic of Congo and the (inaudible) of Guinea have finished.

What these have completed is to stabilize the degrees of overseas trade in the area and strengthen fiscal deficits, slender fiscal deficits. This still remains quite a bit to do when it comes to reforming the enterprise setting in nations to spur progress. And the emphasis of our work and dialogue with authorizes has now shifted a bit bit more in the direction of ensuring that we have now a enterprise surroundings that is more conducive to non-public investment.

In order that’s the place we rare in the dialogue underneath the packages. If authorities need further engagement with IMF we are in fact all the time ready to pay attention and see what we will do.

FOUDA: Any questions on this aspect of the? Let’s start within the back with the woman please.

QUESTIONER: I want to take just a couple of questions.

Now you talked about creating jobs for the rising inhabitants of youth. And we now have that state of affairs in Nigeria the place lots of people are graduating with no jobs waiting for them. So in keeping with the ERGP of the government, have you ever seen that impacting and creating jobs? And what is your common evaluation of every so removed from the annual conferences until now?

Then I might also need to know the position of the IMF when it comes to regional conflict as it impacts improvement. We now have seen clashes between the farmers, the headers, and it’s not — not just restricted to Nigeria. It is shifting into neighboring nations.

We now have also had that a few of these individuals move throughout border so really what is the influence to financial improvement in these nations having this peculiar disaster? Thanks.

SELASSIE: Okay. On financial reforms, again, I feel it is really essential to see to to start with like acknowledge how deep the shock that the Nigerian financial system was hit by when commodity prices declined, you already know, from or the oil costs declined from $100 or more that was prevailing earlier than 2014 to where there at right now. That has been a very extreme shock and has had an incredible impression on the financial system.

There has been adjustment to that shock in fact. In some instances, it is still ongoing however we expect that, you understand, the main target now has to shift and this is where I feel the ERGP was robust when it comes to diversifying the financial system.

We welcome the efforts the government has been making to enhance, you realize, to deal with corruption, to improve governance in the nation. We very much welcome the emphasis on public investment. What stays we expect when it comes to priorities going ahead, actually is making an attempt to make it possible for government regenerates extra assets that it will probably use to spend money on well being, in schooling, in additional infrastructure.

So, tackling the income aspect of the equation is really what is really essential. Nigeria has a reasonably low degree of income to GDP ratio. I feel shifting ahead within the coming months and years to deal with that can be essential.

And I feel, you recognize, that funding in infrastructure, investment in well being and schooling is exactly the type of funding the government must make to facilitate extra personal sector progress, tackling other constraints on personal sector to create the hundreds of thousands of jobs that Nigeria needs.

On battle, you understand, I feel it is a very well timed query. The regional economic outlook that we simply put out, has a chapter really wanting at the influence of battle on the region, on nations, on economic outcomes. So I urge you to take a look at that.

It’s to, you realize, suffice it to say that in fact within the area the extent of conflict stays a lot, much decrease in sub-Saharan Africa as an entire. The level of conflict stays a lot lower than it was. But we’ve seen an uptick in violence within the Sahel region particularly but in addition in the Lake Chad basin nations.

Frankly what is wanted in fact is addressing instantly these, the conflicts and minimizing the spill overs that they’re having on the populations but in addition it factors to the necessity for our improvement insurance policies to be rather more inclusive,to attempt to handle the poorest elements of our nations, the event challenges that face the poorest elements of our nations.

FOUDA: Let’s take another query here. And we’ll take one last in the back. Shortly please.

QUESTIONER: Thanks. My question is truly a comply with as much as the one my brother, Tibad asked in regards to the scary prediction about poverty indication in Africa within the subsequent 10 to 11 years.

So the query is the addition to the query truly is if the African Division of IMF is truly doing one thing to for occasion as for debt (inaudible) for African states in this interval and whether or not there is additionally reforms within the methods you’re create this — being, giving and (inaudible).

For example (inaudible) didn’t consider in Africa that when IMF World Bank supplies a mortgage they create employment for their individuals with which the credit is used to finance whereas dwelling challenges and indebtedness for the individuals at the end of it. So the Africans are (inaudible) alone to finance — to create employment for creating economies.

What is the African Department of IMF really doing to see that there is a change on this in order that monies for African nations can really work for them and add to our worth. Thank you.

How can governments, how can policy makers, how can societies fairly frankly, it’s not just governments which are accountable but broader stakeholders including parliaments, personal sector, CSO’s, NGO’s. What are the challenges and what is one of the simplest ways to deal with them?

The, our advice is nation specific and revolve around, you realize, for example on efficient use of public assets. You understand, what is the easiest way of having a public finance management framework? What is the suitable degree of deficit governments can pursue to strike a healthy stability been on the one hand continuing to deal with improvement wants, second avoiding debt.

Public funding administration is an space the place we do various work, you realize, tips on how to prioritize, easy methods to select the correct sort of tasks. So I feel, you understand, the contribution we make in nations like Nigeria is exactly in that space. You realize, providing the coverage recommendation because we don’t have a lending program for instance. In order that’s how we help.

In other nations, nonetheless, you recognize, we are available to help governments with the assets, borrowing. I feel the (inaudible) instance that the gentleman earlier raised for instance. On this case the nations have been hit very onerous by the decline in commodity costs. They misplaced fiscal revenue, they lost exterior income. So we offered financing to help them proceed to spend, help investments in health and schooling.

Again, in these nations also we do various work on the public finance points I famous earlier. But in addition serving to them strengthen the governance and governor’s frameworks, tackling corruption, ensuring there is more transparency in public accounts. So this is the contribution that we are making.

FOUDA: Last question. Within the back please.

QUESTIONER: Ghana has simply completed the financial sector pre-nup. That we are advised that is going to assure a strong financial system.

Now the question is how do you assume it will impression one on the monetary system of the country, two to make sure progress as a result of we’re already seeing some job losses within the (inaudible). Thanks.

SELASSIE: Okay. So, you recognize, a wholesome financial sector really is paramount in all our economies, notably in an financial system like Ghana which is a frontier market financial system, shifting toward emerging market status. Financial sector which is healthy, which is vibrant, which offers financing for personal sector. And above all is healthy is actually essential.

You understand, if you want to give it some thought the opposite approach, you already know, we now have seen the type of injury that banks failing, banks and financial sectors failing can have globally. We simply should look back to the global monetary disaster and the turmoil it’s brought on in nations corresponding to the USA and lots of European nations.

So it’s, you realize, I can’t stress enough how necessary having a healthy monetary sector is. You understand, banks which are robustly capitalized can, you understand, are a supply of power for an financial system and in order that’s been the broad path through which the monetary sector clean up in Ghana has been moving into. Where it has entailed some job losses in fact, discovering ways to attenuate these will probably be necessary but I feel that tends to be very financial institution particular issues.

For the broader financial system at giant, I feel That the work that the government has been doing is very encouraging and it must proceed going ahead. Thanks.

FOUDA: Thank you so very much, Mr. Aemro Selassie. Thank you guys for coming. We’ll see you again in October I assume. Thanks.