Financial experts on Tuesday called for the effective implementation of measures in order to avert an economic crisis in Africa.
Catherine Pattillo, deputy director of the African Department at the International Monetary Fund (IMF), said in Nairobi, Kenya’s capital, that the global recession coupled with rising food and energy prices is likely to impact the region’s most vulnerable residents.
“African policymakers should prioritize interventions that boost social safety nets as one of the avenues toward sustainable economic recovery,” Pattillo said during a discussion on the IMF’s Regional Economic Outlook.
She noted that the implementation of fiscal consolidation will help reduce budget deficits as well as external borrowing costs.
Pattillo also called for enhanced domestic resource mobilization in order to tame the rising public debt levels.
Patrick Njoroge, governor of the Central Bank of Kenya, said that better coordination of both national and foreign funding will support Africa to overcome the global monetary tightening that has put significant pressure on local currencies.
Njoroge said that the continent should prioritize its exports in order to boost its foreign currency reserves.
Kwame Owino, chief executive officer of the Institute of Economic Affairs (IEA), a Kenyan think tank, said that the region should implement government austerity measures by improving the efficiency of public expenditures.
Owino suggested that public funding should also be directed toward the agricultural sector in order to build the resilience of drought-affected farmers.
