Summit pushes $100bn reserves for Africa’s recovery

African and European leaders have agreed to push wealthier nations to reallocate $100 billion in International Monetary Fund(IMF) reserves to African states, planned for October. That was the outcome of a summit held in Paris on Tuesday.

A communique said a substantial financial package is needed so African countries are not left behind in an economic recovery from the global health crisis.

Key to the talks what’s called Special Drawing Rights (SDR), from the IMF reserves, and reallocating them from richer nations to the continent.

French President Emmanuel Macron said France and several European countries were aboard.

“Our work in the coming weeks will be to convince others to make the same effort as France, starting of course with the United States of America.”

The summit is part of Macron’s efforts to recast France’s engagement in Africa, where it was once a colonial power.

It also comes at a time when the continent faces a near $300 billion deficit by the end of 2023.

The African Development Bank has forecast that 39 million people could fall into poverty in 2021.

Senegal’s President Macky Sall welcomed the plans, describing it as a change of paradigm.

“Africa has been used to see projects and programs conceived for it and imposed on it. Today, we are building what we need for us together. I think that is what is new and that is why there is hope.”

The International Monetary Fund’s chief, Kristalina Georgieva, said Africa’s economic output would increase by only 3.2% in 2021, compared with 6% in the rest of the world.

“Revenues are down, expenditures are up and debt is high.”

Georgieva pledged to come up with a new allocation proposal by August.