Twenty one African countries under the aegis of the International Monetary and Financial Committee have advised the IMF to focus on financial sector development in sub-Saharan Africa.
Mr Teklewold Atnafu, the Governor of the National Bank of Ethiopia, gave the advice at the 23rd meeting of the Annual Spring Meeting of the IMF and World Bank on Sunday in Washington.
“Although sub-Saharan Africa had limited integration with global financial system and insignificant spillovers, this is changing rapidly.
“We, in this regard, want to draw attention to the importance of focusing on financial sector developments in sub-Saharan Africa,” he said.
According to him, this will provide opportunities for strengthening inter-connectedness in the financial sector, noting that without string regulatory institution, financial stability would be compromised.
Commenting on the low income countries, he said that the committee was encouraged by the IMF’s recent vulnerability exercises for the countries.
He suggested that the fund should be more responsive to the financial needs of low income countries.
“The IMF must stand ready to support these efforts through its policy support and financing instruments,” he said.
He urged the fund to sharpen its role in low income countries well beyond its pre-crisis interventions by further adapting its toolkit to the new financing needs.
He called for the scaling up of resources in fund lending arrangement with the countries, enhancement of access levels and the extension of an interest free moratorium for another three years.
NAN reports that Nigeria, the Gambian, Kenya, Lesotho, Liberia, South Africa, Malawi and Mozambique among others are members of the committee.