Germany has signed a memorandum of understanding with the International Monetary Fund, IMF, in commitments on capacity development.
Wolfgang Schäuble, Germany’s Federal Minister of Finance and Christine Lagarde, Managing Director of the IMF, signed the MoU at the IMF headquarters today, whereby the German Ministry of Finance will provide €15 million in support of the IMF’s capacity development activities across Africa in the context of the G-20 Compact with Africa.
The Compact with Africa is an initiative launched under Germany’s G-20 Presidency in December 2016 and aims to boost private investment and increase infrastructure development in Africa.
“Resilient macroeconomic institutions are critical for attracting more foreign direct investment.
“IMF capacity development supports African policymakers’ efforts to address reform challenges in areas such as strengthening domestic resource mobilization, implementing fair tax systems, achieving good financial governance, and fostering financial stability and inclusion, in support of 2030 Agenda for Sustainable Development,” a statement by IMF read.
Initially, five countries are joining the Compact with Africa: Cote d’Ivoire, Morocco, Rwanda, Senegal, and Tunisia, with another group of countries expected to join later this year.
Germany’s Federal Finance Minister Wolfgang Schäuble commented: “Capacity development is important to improve conditions for private investment in Africa. This is why we support the IMF’s very valuable efforts both financially and conceptually”.
Signing the MoU, the IMF Managing Director Christine commended the German government for making the Compact with Africa a G20 priority this year.
“This compact has the potential to mobilize investment and energize inclusive economic growth in Africa.
“The IMF greatly appreciates the support of the German government for our capacity-building efforts in Africa and we are very pleased to participate in this important initiative,” Christine said.