European Union commits €14.6m to support IMF capacity building in Africa

The International Monetary Fund (IMF) and the European Union (EU) have expanded their partnership in support of the IMF’s capacity building in Africa through the exchange of two Contribution Agreements totalling €14.6 million (about $20 million).

The agreements, the IMF said in a statement October 17, 2011 will support the Africa Regional Technical Assistance Centers for Eastern (AFRITAC East) and Southern Africa and the Indian Ocean region (AFRITAC South).

According to the Fund, AFRITACs provide assistance critical to strengthening public finances and reducing poverty, including debt and revenue management, and tax reform. They also support regional integration and provide a platform for donor coordination.

“We are delighted to expand our close partnership with the EU in support of our member countries in Eastern and Southern Africa, and are very grateful for its generous support for these two regional centers,” Deputy Managing Director Min Zhu was quoted as saying in the statement at the ceremony marking the exchange of the agreements in Mauritius, where AFRITAC South was officially opened.

The funding comes from the EU’s 10th European Development Fund (EDF) Regional Indicative Program for the Eastern and Southern Africa and Indian Ocean (ESA-IO) region, IMF said.

Work is in progress to open a regional center in Ghana to cover non-Francophone countries in West Africa, it noted.

By Ekow Quandzie