A New Frontier for Kenya and Africa


MD's Updated Headshot By Christine Lagarde

For yet a third year I have kept my tradition of starting the New Year with a visit to Sub-Saharan Africa—a region that truly offers great promise! As the world economy has remained focused on the crisis of the advanced economies, Africa has quietly forged ahead with strong growth led by a vibrant private sector and surging foreign investment. Over the past decade Sub-Saharan Africa has posted growth averaging 5.6 percent a year.

The countries of East Africa have done especially well. So what better place to begin my travels this year than in Kenya, which has emerged as one of the region’s “frontier economies”—countries whose recent performance is propelling them toward middle-income status.

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This Time It’s Different


By Dominique Strauss-Kahn,

Managing Director of the International Monetary Fund

My final destination in this week’s visit to Africa was Zambia, where I sought the views not just of the government but also of the people—in a town hall with civil society, students, and the media. Zambia has one of the highest economic growth rates in sub-Saharan Africa: 6.3 percent in 2009 and the outlook for 2010 appears positive.
While recognizing that Zambia, just like Kenya and South Africa, has its own unique characteristics, I have pulled together some common threads from what I have been hearing in Africa over the past several days.

Something New Out of Africa: A Global Player


By Dominique Strauss-Kahn,

Managing Director of the International Monetary Fund

The sense of African energy and dynamism that I described during my visit to Kenya is reinforced strongly here in South Africa. And it’s not just World Cup fever—though there are plenty of signs of that too.

By some estimates, close to 10 million people are expected to visit South Africa this summer for the football (soccer) extravaganza—a further boost to its economy and its image in the world. South Africa is a global player.

This country has long been seen as the growth hub in the south and eastern part of the continent. But this past year, as a member of the G-20 group of nations, South Africa has come to be seen as much more–an emerging market, yes. And now also an influence on how global decisions are shaped. This is a new role for Africa in the world—and a new way for Africa to be seen by the world.

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IMF—Delivering on Promises to Africa


By Dominique Strauss-Kahn,

Managing Director of the International Monetary Fund

This week, I’m on my third visit to sub-Saharan Africa within a year. And what a difference a year has made!

This time last year, Africa was swept up into the vortex of the global financial crisis. The global recession struck Africa through several channels—exports collapsed, banks ran into trouble as non-performing loans grew, and investment diminished. Average growth in sub-Saharan Africa fell to 2 percent in 2009 from 5.6 percent the previous year.

But improved policies in the face of the crisis helped the continent get through the storm better than expected and at the IMF we anticipate that Africa will see a relatively quick recovery, with average growth bouncing back to 4½ percent this year and 5½ percent in 2011. African countries were able to take appropriate measures to mitigate the turbulence because policies before the crisis were good, allowing them to build reserves, cut debt, and open up fiscal space to combat the recession.

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IMF Helping Africa Through the Crisis


By Antoinette Sayeh

I believe that Africa’s needs must be fully reflected in any global response to this unprecedented recession. With similar intentions, leading policymakers and stakeholders in Africa gathered in Tanzania last March to discuss how to work with the IMF on this. Under the leadership of President Kikwete and IMF Managing Director Strauss-Kahn, the participants agreed to build a new, stronger partnership.

More than just rhetoric, these common goals included the IMF seeking more resources for Africa and reacting more rapidly, responsively, and flexibly. While much remains to be done, I think it is a fair to say that we have achieved a remarkable amount on both fronts—more in fact than I could have imagined when I started in my job just a little over a year ago.

My colleague, Hugh Bredenkamp has done a fine job detailing the IMF’s response to the needs of low-income countries. In  this post, I would like to talk a little about what it all means for Africa.

Sorting cashew nuts in Tanzania

Sorting cashew nuts in Tanzania

As a reminder, the IMF agreed to mobilize $17 billion through 2014 for lending to low income countries, mostly in Africa—trebling our lending capacity to these countries. This goes far beyond the promise given by our Managing Director in Tanzania to seek a doubling of concessional resources. The financial terms of IMF support have also become more concessional, with zero interest until the end of 2011, and will remain more concessional thereafter.

And the IMF has moved quickly to deploy these resources in Africa. Among international institutions, it has an extraordinary capacity to react early to a country’s needs, as I know from my own experience as a policymaker in my home country of Liberia. Indeed, in the first eight months of 2009, we committed over $3 billion in new resources to countries in sub-Saharan Africa, trebling the total stock of outstanding commitments this year alone.

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