African countries to face new policy challenges as they develop
Goal of new center is to build economic policymaking capacity on continent
Training will be anchored in the realities of macroeconomic management in
The IMF has opened a new training institute in
"The opening of the
Coping with new issues
Many countries in sub-Saharan Africa have now sustained 5-6 percent growth rates for more than a decade, thanks to sound economic policies, debt relief, stronger institutions, and high investment.
But despite this sound performance, there are risks to the outlook, Zhu pointed out. Some are driven by external factors-such as a weakening of growth in the rest of the world, or a tightening of global financial conditions-while others could arise from domestic sources, such as rising fiscal imbalances. Through its technical assistance and training, the IMF can help country officials gain the skills to manage these risks, he said.
In addition, as African economies reach higher income levels, they will begin to confront a new set of challenges similar to those faced by middle-income countries elsewhere in the world, Zhu noted.
"They will have to deal with capital inflows, a deepening financial system, and the increasing complexity of their financial markets," he said. "This, in turn, would require stronger institutions and higher skill levels of government officials to be able to manage these new, more complex financial sector risks."
The new training institute is located next door to the IMF's regional technical assistance center for southern
"The ATI serves as an embodiment of the IMF's new integrated and holistic approach to capacity development," Zhu said.
"Under this new approach, the IMF aims at developing capacity in both institutions and people, by bringing training and technical assistance more closely together," he added.
The ATI joins a network of five
Aware of the need to build capacity in sub-Saharan Africa, the government of
These donations, together with a contribution from
Through the ATI, the IMF will deliver a broad curriculum of macroeconomic management courses from fiscal, monetary, and exchange rate policies to inclusive growth policies, financial inclusion, debt sustainability, and the management of natural resource revenue-an area that is increasingly important for countries in
The center's courses will be tailored to the needs of African policymakers and anchored in the realities of macroeconomic management in
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