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France, African leaders push to redirect US$100B in IMF reserves to Africa by October

French President Emmanuel Macron said on Tuesday a summit in Paris on Africa financing had agreed to work towards persuading rich nations by October to reallocate US$100B in IMF special drawing rights monetary reserves to African states.

Impoverished African economies must not be left behind in the post-pandemic economic recovery and a substantial financial package is needed to provide much-needed economic stimulus, African and European leaders concluded at a summit in Paris.

In the immediate term, that meant accelerating the COVID-19 vaccine rollout and creating the fiscal breathing room for African nations, which will face a spending shortfall of some US$285B over the next two years, the summit communique showed.

The communiqué set out a two-pronged response based on addressing financing needs to support a sustainable, green recovery and the underpinning of private-sector-driven growth – but it was light on concrete commitments.

“This is a new start, a new deal for Africa,” Senegalese President Macky Sall told reporters.

International Monetary Fund (IMF) chief Kristalina Georgieva said it was time to stem the “dangerous divergence between advanced economies and developing countries, especially (in) Africa.”

Source: Further Africa

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