By Dele Ogbodo
The Federal Government of Nigeria led by President Bola Tinubu and 50 other African countries have urged the International Monetary Fund (IMF) and the World Bank Group (WBG) to redeemed the $120 billion International Development Association (IDA21) replenishment commitment to address persistent and emerging challenges climate change, food insecurity, energy deficit and its fragile economy.
As Nigeria draws down the curtain of the 2024 African Caucus Meeting of Governors of the International Monetary Fund (IMF), the World Bank Group and other stakeholders on Saturday (August 1 – 3, 2024), the Director, Information and Public Relations, Mr. Mohammed Manga, in a statement made available to Nigerian media organisations, said President Tinubu, who was represented by the Vice President Senator Kashim Shettima, was led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Central Bank of Nigeria, led by Governor Olayemi Cardoso, at the 2024 African Caucus Meeting of Governors of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Abuja.
Manga, said the meeting which was held in person pulled Ministers, Governors of Central Banks from 50 African countries and other distinguished panelists from beyond, including the Deputy Secretary General of the United Nations, Mrs. Amina Mohammed, Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Keabetswe Mene, Hon. Lord Paul Boateng, of the UK House of Lords, members of Nigeria’s Federal Executive Council, as well as country delegates from across Africa and beyond, including representatives from the Bretton Woods Institutions (BWIs).
The theme for the 2024 Caucus Meeting: Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa, identified major drivers for growth and development across the continent, he added.
The meeting, according to him, recognized the importance of intra-African trade in unlocking production, investments, and jobs in Africa, adding, it also took cognizance that African countries continue to trade with the rest of the world more than among themselves.
The statement, reiterated: “The meeting agreed that addressing both tariff and non-tariff barriers to intra-African trade-including fragmented payment ecosystems, poor energy access, lack of infrastructure, inconsistent regulatory frameworks, and divergent cross-border procedures-was critical to bolstering Africa’s share of global trade and stimulating sustainable and inclusive growth in the continent.
“The meeting also underscored the point that trade could stimulate economic growth by creating opportunities for increased production, investment, and job creation. It provides access to larger markets, new technologies, and capital.
“The African Continental Free Trade Area (AfCFTA) aims to promote trade among African countries by reducing trade barriers, harmonising regulations, and facilitating the movement of goods and services within the continent.”
The Governors, Manga, said underlined 4 key pathways to boosting intra-Africa trade, namely: strengthening pan African payment ecosystem, enhancing energy access, affordability, and connectivity, leveraging partnerships with MDBs, and reforming global financial architecture.
According to him, the Caucus also called on the IMF and World Bank Group to ensure that their support to member countries continues to be guided by principles of balance and evenhandedness, and consistent with their own policies.
He said: “These considerations are all the more important at a time when countries are being assailed by adverse exogenous shocks and facing immense financing needs.
“This gathering took place amid a synchronised global economic slowdown, with global GDP growth decelerating due to monetary tightening in developing countries and disruptions in global supply chains, exacerbated by geopolitical tensions, including the Ukraine and Palestinian crises.
“These factors further strain development prospects. Despite Africa’s remarkable resilience, evidenced by its GDP growth, intra-African trade remains relatively low, accounting for only about 14.4% of total African exports.
“The outcomes of this 2024 African Caucus deliberations will be summarized in a Memorandum to be delivered to the Heads of the BWIs, in October 2024, during the Annual Meetings of the IMF and the WBG, in Washington, USA.
ABOUT THE AFRICAN CAUCUS:
The African Caucus was established in 1963 to strengthen the voice of African Governors to the issues of mutual interest for Africa. Membership of the Caucus is open to all African countries that are members of the African Union (AU). Currently, all 54 African countries are members of the IMF and WBG.
The countries are represented by their respective Ministers of Finance and Governors of the Central Bank or by other officials designated as such by the governments. They are called African Governors for the IMF and the WBG.
During the Caucus Meetings, African Governors usually build consensus on the key challenges affecting the continent that require the BWIs’ attention and communicate the same in a Memorandum to the Heads of the BWIs at the Annual Meetings.
Once delivered, the leadership of the BWIs responds by outlining how their respective institutions plan to address these challenges, including ongoing efforts in this direction. The first, such as Memorandum, dates back to September 11, 1964.
The Chairmanship of the African Caucus is rotational on an annual basis. The Caucus meets twice a year. The first meeting is held in the host country of the Chairperson of the Caucus, generally between the last week of July and the first week of August.
The second meeting takes place in October at the venue of the Annual Meetings of the IMF and WBG.
The Offices of the Executive Directors (EDs) representing the host country on the IMF and WBG Boards serve jointly as secretariat for the African Caucus. Administrative support for the 2024 Caucus Meetings is therefore provided by the Offices of Executive Director Africa Group 3 at the World Bank Group (WBG) and Office of the Executive Director African English at the IMF, where Ayanda Dlodlo and Willie Nukunyanda represents Nigeria at the WBG and IMF, respectively.