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The IMF has called on governments in sub-Saharan Africa to be cautious about macroeconomic reforms since famine is spreading in the region affected by the aftermath of Covid-19 and the war in Ukraine. The multilateral body called for careful prioritisation of policies, given financial and capacity constraints
The IMF has called on governments in sub-Saharan Africa to be cautious about macroeconomic reforms since famine is spreading in the region affected by the aftermath of Covid-19 and the war in Ukraine. The multilateral body called for careful prioritisation of policies, given financial and capacity constraints.
The UN body estimates that at least 123 million people, or about 12% of the population of sub-Saharan Africa, may be acutely food insecure, severely malnourished, or unable to meet their basic food needs. The impact of the pandemic and the ongoing Ukraine -Russia war contributed to the stalemate, said the IMF. Recalibrated monetary policies could mitigate the impact on domestically produced goods and anchor inflation, which it stressed, could be taken by some of the affected countries amidst the problems let loose by the present predicament. As a part of the reform process, these countries can follow trade liberalisation and import diversification.
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The IMF has renewed its commitment to support African countries in need of technical assistance and financial support. At the same time, it insisted that countries in Africa should follow some trade liberalization policies when the region faces acute shortages. For instance, it has been pointed out that Zambia’s ban on exports of its maize in 2020, when the availability of some of the crop could have helped fill the food gap in southern Africa.
