MALAWI: IMF Malawi Rep Urges a Stop on Smiling Donor Aid
By Luke Bisani
The International Monetary Fund (IMF) Resident Representative for Malawi, Nelnam Koumtingue, has urged African countries in the Sub-Saharan region not to celebrate the financial bailout, arguing the development depicts an economic crisis.
Speaking during a public lecture held at the Catholic University of Malawi on Tuesday, November 26, on the Regional Economic Outlook for Sub-Saharan Africa published in October, the IMF Resident Representative said African countries must stop smiling at financial help received from donor countries.
Mr. Koumtingue, while disclosing that the IMF has disbursed over USD 5 billion in 2024 to support African countries facing financial hiccups, said the development calls for worry.
“This is not something that we should be celebrating. It means that countries are facing financial crises whenever they are receiving such help,” said Koumtingue.
Turning to the economic outlook, Koumtingue said that the gross domestic product (GDP) for sub-Saharan countries in 2024 remains subdued due to idiosyncratic factors that include the impact of droughts and electricity shortages, to name some.
Koumtingue further disclosed that among the reasons that are making economic growth cloudy for Sub-Saharan countries include climate shocks, volatility in commodity prices, slowdowns in advanced economies, and volatile financial markets, just to list some.
Adding further, the report has disclosed an urgent need for Sub-Saharan countries to urgently create jobs for their growing populations.
Twice a year, the IMF publishes a Regional Economic Outlook for Sub-Saharan Africa that helps restore macroeconomic stability among others.
