In a context of overall lackluster global growth and a generally unsupportive external environment, emerging market and developing economies face significant policy challenges in maintaining the levels of growth required to secure sustained movements out of poverty. The year 2016 was particularly difficult for sub-Saharan Africa, with growth estimated to have been negative in per capita terms and slowing in the majority of countries. However, this aggregate picture masks considerable heterogeneity. Commodity exporters, including many of the region’s largest countries, are facing severe economic strains. But some sub-Saharan African countries continue to register robust growth, due to ongoing infrastructure investment, strong growth in private consumption, and general improvement in the business climate. However, even in those countries, there is rising concern with regard to the sustainability of the policies employed to support the recent growth momentum. This seminar offers an opportunity to reflect on the challenges faced by sub-Saharan Africa at this juncture and to identify policies—macroeconomic and structural—that could work to reinvigorate growth in the region.
Antoinette Sayeh, Distinguished Visiting Fellow, Center for Global Development
Antoinette Monsio Sayeh is a distinguished visiting fellow at CGD. Previously, she oversaw and enhanced the International Monetary Fund’s engagement with its sub-Saharan African members as Director of the African Department from July 2008 to August 2016. As Minister of Finance in post-conflict Liberia, Ms. Sayeh led the country through the clearance of its long-standing multilateral debt arrears, the HIPC Decision Point, the Paris Club, and its first Poverty Reduction Strategy, significantly strengthening its public finances and championing public financial management reform. Before joining President Ellen Johnson Sirleaf’s Cabinet, she worked for the World Bank for 17 years, including as country director for Benin, Niger, and Togo; senior country economist on Pakistan and Afghanistan, as well as an advisor in the Bank’s Operations Policy Vice Presidency and as assistant to its principal managing director. Sayeh also worked in economic advisory positions in Liberia’s Ministries of Finance and Planning. She earned a bachelor’s degree with honors in Economics from Swarthmore College and a PhD in International Economic Relations from the Fletcher School at Tufts University.
Mitsuhiro Furusawa, Deputy Managing Director, IMF
Mitsuhiro Furusawa assumed office as Deputy Managing Director of the International Monetary Fund on March 2, 2015. He joined the IMF after a distinguished career in the Japanese government, including several senior positions in the Ministry of Finance in recent years. Immediately before coming to the Fund, he served as Special Advisor to Japanese Prime Minister Shinzo Abe and Special Advisor to the Minister of Finance. Among his recent ministry postings, Mr. Furusawa served as Vice Minister of Finance for International Affairs (2013–2014), Director-General of the Financial Bureau (2012–2013), and Senior Deputy Director-General of the International Bureau (2009–2010). His overseas postings for the Japanese government have included IMF Executive Director (2010–2012), Minister (Finance) at the Embassy of Japan in the United States (2007–2009), and Counselor (Finance) at the Embassy of Japan in France (1997–1999). A 1979 graduate of the University of Tokyo with an LL.B. degree, Mr. Furusawa also graduated in 1983 from the École Nationale d’Administration in Paris.
Randa Filfili, CEO, Zena Exotic Fruits, Senegal
Randa El Haddad Filfilli is the CEO of Zena Exotic Fruits, a Senegalese SME that specializes in the transformation of local fruits and vegetables into natural products such as jams and jellies, syrups, juices and pepper sauces. Zena Exotic Fruits is one of Senegal’s leading international brands. To date, the brand is present in Africa, Europe, the United States, Canada, the Middle East and Asia. Prior to this, Ms. Filfilli spent 11 years in the educational sector. Completing a Bachelor’s degree in Marketing in 2014 marked her transition to the food industry. Her objective is and will always be to make great quality and healthy products while involving local talent and contributing to the community’s economic development. To help support other women in the food processing industry, Randa volunteers her time to help women organized in Small Economic Interest groups, by training them in quality control but also marketing techniques.
Donald Kaberuka, Distinguished Visiting Fellow, Center for Global Development and former President, African Development Bank Group
Formerly, 7th President, African Development Bank (2005–2015) Under Dr. Kaberuka’s leadership the Bank tripled its capital from USD 30 billion to USD 100 billion and doubled the portfolio to USD 12 billion per annum. His leadership was characterized by a "big push” on infrastructure. He also championed an inclusive growth agenda; promoting a strong link between security, development and environment, establishing a ringfenced facility for conflict-affected countries. Prior to joining the African Development Bank, Dr. Kaberuka was Finance Minister of Rwanda for eight years (1997–2005). Dr. Kaberuka is an alumnus of the University of Glasgow in Scotland and was Hauser Leader in Residence at Harvard Kennedy School. He currently serves on the Board of the Rockefeller Foundation, the Mo Ibrahim Foundation, the Centre for Global Development and is a Senior Adviser to the global Private Equity firm, TPG-Satya, promoting investment on the African Continent. Earlier this year Dr. Kaberuka was appointed as a Special Envoy of the African Union on sustainable Financing for the Union and funding for Peace in Africa.
Alamine Ousmane Mey, Finance Minister of Cameroon
Alamine Ousmane Mey, has been Minister of Finance of Cameroon since 2011. He is the Chairman of Central Africa Investment SA. In 1993, he joined the CCEI bank (which became Afriland First Bank), and was promoted to Chief Executive Officer in 2003 Mr. Mey also served as General Manager and a Member of the Management Board of Afriland First Bank. In 2004, he piloted the launch of I-CARD, the first e-wallet in the Central African sub-region. He studied in Germany at the Technical University of Rhineland-Westphalia in Aachen, as well as in Belgium and Turkey. Minister Mey was recognized as Finance Minister of the Year at the prestigious African Banker Awards 2016.
Felix Mutati, Minister of Finance, Zambia
Felix Mutati was appointed Minister of Finance in September and presented his maiden budget dubbed “Zambia Plus” which was approved in December 2016. From 2011 into 2016, Felix Mutati was a Member of Parliament in Zambia with special responsibility for scrutinizing government performance in the economic affairs committee, and served as an elder of the Common Market for Eastern and Southern Africa (COMESA). Minister Mutati has served as cabinet minister for Energy and Water Development (2002–04) and, subsequently, for Commerce, Trade & Industry (2004–2011). During these tenures, he spearheaded national initiatives aimed at poverty alleviation and private sector development, as well as coordinated international efforts to harmonize regional trade and investment. He chaired the body of Ministers of Trade of the Southern African Development Community (SADC) during the 2007/08 consolidation of the SADC free trade area and the initiation of the roadmap to establishing a SADC customs union. He has also held various positions at the international level, including as Coordinator of the Least Developed Countries (LDCs) at the World Trade Organization (WTO). Minister Mutati is a Fellow of the Chartered Accountants and has delivered lectures on wide-ranging issues such as regional integration, the impact of tax reforms on poverty reduction and corporate governance and social responsibility.
Sub-Saharan Africa remains a frontier for growth with seemingly boundless potential. But the region currently faces a broad-based slowdown that has resulted in negative per capita income growth for the first time in 20 years. This high-level panel of policymakers and entrepreneurs discussed the challenges facing the region and the policies required to restore vigorous growth.
Key Points:
- Furusawa noted that it is critical to restore macroeconomic stability to boost growth in sub-Saharan Africa. For commodity exporters, particularly oil producers, fiscal consolidation remains a high priority. Domestic revenue mobilization could also create significant space for priority public spending. IMF research has found that the median sub-Saharan African country has the potential to increase revenue by a substantial amount through domestic revenue mobilization.
- Mey highlighted that greater regional integration will be necessary to improve competitiveness. In one telling example of the need for greater regional integration, Filfilli noted that it is easier to export products from Senegal to France than to Nigeria. She cited commercial barriers, corruption, poor infrastructure, and uneven implementation of laws as obstacles to doing business in the region.
- Mutati spoke strongly about the need for sub-Saharan African countries to take ownership of their problems and create homegrown solutions. He noted that sub-Saharan Africa did not face a lack of innovative plans, but rather a lack of capacity to implement such plans, or even to absorb development assistance.
- Kaberuka downplayed the role of commodities in the region’s growth slowdown. Though he recognized that the downturn in commodity prices was part of the story, he highlighted central bank independence and consistent growth-supporting policies as being critical to the resumption of high growth.
- Kaberuka called on multilateral development banks and governments to take a countercyclical approach to infrastructure spending and investment. He expressed hope that the IMF would provide space for countries to spend on infrastructure even during the current slowdown.
Quotes:
“The continent has huge opportunity and potential and with the appropriate macroeconomic and structural policies, I’m confident that the region can return to vigorous growth, and the IMF is working and will work with African members to achieve this.” Mitsuhiro Furusawa, Deputy Managing Director, International Monetary Fund
“All the measures we are talking about are useless if execution is not properly done. It is obvious that the best solutions cannot help if they are not implemented in the proper manner.” Alamine Ousmane Mey, Minister of Finance, Cameroon
“We don’t simply have to return to vigorous growth, it has to be broad-based growth. It has to be inclusive growth. There’s growth, development, and transformation—our governments are focused on the three simultaneously.” Donald Kaberuka, Special Envoy, African Union
“Unless you gain stability, you won’t be able to grow. The issues must be home grown…We must be the ones who take those tough decisions in order to begin to make the wheels turn.” Felix Mutati, Minister of Finance, Zambia
“Especially in West Africa, I encourage all women to become entrepreneurs.” Randa Filfilli, CEO, Zena Exotic Fruits
