For the IMF, the vision is to use the Shanghai Centre as a regional hub for research, policy dialogue and outreach, with a focus on emerging and middle-income economies. 

It is also expected to expand the Fund’s presence in a region that now drives more than half of global growth. China provided financial backing for the facility.

Chinese journalist Xu Zeyu said the opening is also the latest affirmation of China’s rising monetary status, noting that the renminbi joined the IMF’s Special Drawing Rights basket in 2016 with a 10.92% weight, later increased to 12.28% in 2022. 

This, Xu said, proved the currency’s growing acceptance as a “freely usable currency” and its impact on the global monetary landscape.

Johannes Wiegand, a veteran IMF economist, has been appointed the centre’s first director. Its opening was marked by a seminar on macroeconomic challenges in emerging markets, including structural change, finance and the rise of artificial intelligence.

Xu added that the Shanghai Centre could accelerate RMB internationalisation by deepening IMF research on regional financial connectivity and strengthening the yuan’s function as a regional anchor currency—providing Asian economies with more stable, autonomous trade settlement options.

The new outpost comes at a time when demand for IMF lending is at record levels. The Fund currently has around $162 billion in credit outstanding—its highest ever—with 86 countries owing money. Argentina, Ukraine and Egypt account for nearly half of the total.

Founded in 1944 to stabilise the post-war global economy, the IMF now has 191 members and a lending capacity of about $1 trillion. It finances its operations through quotas paid by member states, with wealthier countries acting as creditors and earning interest. Last year, roughly 50 such countries received around $5 billion in interest payments.

Argentina remains the IMF’s largest borrower, with debts of about $57 billion following years of economic crises and repeated bailouts. Ukraine , engulfed in war, owes more than $14bn, while Egypt has leaned on the Fund to manage inflation, currency shortages and fiscal stress.

For Beijing, hosting an IMF hub aligns with its push to expand influence in global economic institutions. Yet the Shanghai centre will not shift the Fund’s decision-making power, which remains anchored in Washington and weighted toward advanced economies.

For emerging Asian countries, the centre could offer easier access to technical support and policy advice, though it does not alter borrowing rules or the IMF’s often-criticised loan conditions.

“We are seeing very robust investment in that sector, both from companies developing AI models and from firms adopting them,” Gourinchas said. “This is being adopted very broadly, and it’s contributing to growth performance in the U.S. right now. But valuations are quite stretched,” he said.

The IMF notes that the rapid expansion of AI is helping to sustain economic activity, especially in advanced economies. Tech giants and traditional firms alike are pouring billions into machine learning, automation, and AI-driven analytics.

“ People see their portfolios performing well,” Gourinchas said, adding, “That confidence is feeding back into stronger spending, which in turn adds to demand pressures.”

Despite the optimism, the IMF warns that asset prices tied to AI may be rising faster than the real economy can justify. Gourinchas said that while some of the projected profits behind today’s market valuations might be accurate, “no one can know for sure.”

The Fund fears that if expectations fail to materialise, if AI productivity gains prove slower or narrower than hoped, a market correction could follow, wiping out wealth and tightening financial conditions globally.

“ Trade tensions, financial market vulnerabilities, and weak fiscal positions are converging in ways that could quickly reverse hard-won gains,” he said while speaking at the Annual IMF Meetings.

Here are the four key threats outlined by the IMF:

1. Trade tensions and supply chain disruptions

Despite some optimism earlier this year, global trade remains at risk from new tariff measures and geopolitical rifts. The IMF noted that while recent U.S. tariffs have had a limited immediate impact due to exemptions, any escalation could knock 0.3 percentage points off global output.

Countries that rely heavily on exports or imported inputs could face inflationary pressures and a slower recovery if protectionism intensifies.

"Flaring up trade tensions with the potential for supply chain disruptions could quickly lower global output by as much as 0.3 percentage points," he said.

2. Financial market risks, the AI boom and a potential tech bubble

The IMF drew parallels with the late 1990s dot-com bubble, cautioning that today’s AI-driven surge in tech investments could start financial instability. Surging stock valuations, rapid capital inflows, and speculative investments risk a sharp market correction.

A sudden fall in tech markets, Gourinchas warned, could hurt household wealth, corporate investment, and global financial conditions . “There are echoes in the current tech investment surge of the dot-com boom of the late 1990s. It was the internet then, it is AI now. We're seeing surging valuations, booming investment, and strong consumption on the back of solid capital gains. The risk is that with stronger investment and consumption, a tighter monetary policy will be needed to contain price pressures. This is what happened in the late 1990s. There is also the flip side of the boom. Markets could reprice sharply,” he said.

3. China’s economic slowdown and structural weaknesses

The IMF flagged serious concerns about China, pointing to its property sector crisis, high local debt , and declining productivity. The country’s pivot to state-backed industrial sectors, such as electric vehicles and solar, has generated growth, but at a potential cost of misallocated resources and rising fiscal burden. China’s ongoing slowdown could spill over to commodity-exporting nations and global supply chains.

4. Fiscal fragility and pressure on central banks

Many countries have failed to rebuild fiscal buffers after the pandemic. With high public debt, rising interest costs, and new spending demands, from climate adaptation to defence, governments face increasing pressure. "As fiscal constraints become more binding, we are seeing rising pressures on central banks. Calls to ease monetary policy, whether to support activity or reduce government debt service at the expense of price stability, always backfire,” he added.

The IMF mission to Kinshasa, led by Calixte Ahokpossi, IMF Mission Chief for the DRC, conducted a review from April 30 to May 13, 2025, which focused on assessing the progress made under the ECF-supported program initiated following the conclusion of the previous arrangement in 2024.

According to Mr. Ahokpossi, the Congolese economy has demonstrated resilience in the face of persistent challenges. “Economic activity has remained resilient, with robust GDP growth of 6.5 percent in 2024. Growth is projected to remain above 5 percent in 2025, driven by continued dynamism in the extractive sector,” he said in a statement released on May 13.

Inflation fell to single-digit levels in April 2025, the first of its kind since July 2022.

Despite the positive economic trajectory, the DRC continues to grapple with the fallout from intensified conflict in its eastern regions. “Since the last quarter of 2024, the DRC has faced an escalation of armed conflict in its eastern part. The intensification of hostilities has cost the lives of thousands and caused severe humanitarian, social, and economic repercussions, particularly in the provinces of North and South Kivu,” Ahokpossi noted.

The new agreement follows the conclusion of the sixth and final review of the previous ECF-supported program launched in 2021, valued at USD 1.5 billion. That program helped significantly boost the DRC’s international reserves from $1.7 billion to $6 billion, which contributed to gradual macroeconomic stabilization despite challenging circumstances.

Jamaica has earned high praise from the International Monetary Fund (IMF) for its robust economic management and resilience, following the completion of its 2025 Article IV Consultation. Led by IMF Mission Chief Mauricio Villafuerte, the review team acknowledged Jamaica's significant progress over the last decade in reducing public debt, anchoring inflation, and strengthening its external position. Despite a recent economic dip due to Hurricane Beryl and Tropical Storm Rafael, the IMF believes the economy is on track to rebound. Unemployment has hit a historic low of 3.7%, and inflation remains within the Bank of Jamaica’s target range, the Guardian reports. Public debt is expected to fall to 65% of GDP, the lowest level in 25 years. However, the IMF cautioned that global economic uncertainty and climate-related shocks remain substantial risks. The institution called for continued reforms in public spending efficiency, productivity growth, and foreign exchange flexibility.

US Southern Command visit

Admiral Alvin Holsey, Commander of the United States Southern Command (SouthCom), is visiting Jamaica this week for high-level talks with national defence leaders. This would be his first official trip to the country since taking command in November 2024. According to a statement from the US Embassy in Kingston, the visit is aimed at reinforcing the longstanding security cooperation between the US and Jamaica Admiral Holsey will meet with Vice Admiral Antonette Wemyss-Gorman and other Jamaica Defence Force (JDF) officials to discuss shared security challenges such as transnational crime and illicit trafficking, Jamaica Observer reports. The embassy noted that Jamaica is considered a regional leader in professional military education, and both countries benefit from a historic and strategic partnership rooted in trust, mutual interest, and strong people-to-people connections.

Bank of Jamaica demonetises cotton banknotes

The Bank of Jamaica (BOJ) has officially demonetized its old cotton banknotes, including the $5,000, $1,000, $500, $100, and $50 denominations, as part of its currency modernization initiative. The process took effect on April 1, with the notes set to lose legal tender status on July 1, 2025. While these banknotes will no longer be accepted for transactions after July 1, the BOJ will continue to redeem them at face value indefinitely. The move is intended to enhance the security and durability of Jamaica's banknote stock, and the central bank has encouraged businesses and the public to make the necessary transitions ahead of the deadline.

Opposition blasts government over US trade policy

Opposition Spokesman for Trade and Investment, Anthony Hylton has criticised the Holness Administration for leaving Jamaica “unprepared and exposed” to shifting US trade policies. Hylton expressed concern over the country’s lack of engagement in regional and continental trade efforts, such as the African Continental Free Trade Area and African Export-Import Bank. He warned that new US tariff regimes, such as the across-the-board 10% levy on global and domestic exports, could trigger import-driven inflation and raise the cost of raw materials, intermediate goods, and consumer products in Jamaica and across CARICOM. “The across-the-board 10 percent tariff on global and domestic exports to the United States, as well as the threatened further increase of tariff on specific sectors, will shortly see prices rising on raw materials, intermediate and finished goods to Jamaica and the Caricom region. The prospects for import-driven price inflation loom large as a result of tariff-driven policies,” the Jamaica Observer quotes Hylton. Hylton further accused the administration of abandoning regional cooperation in favor of an isolated approach, arguing that Jamaica has squandered opportunities to lead external trade negotiations within CARICOM.

Security guards protest over low wages

Security guards assigned to the British High Commission have staged a protest outside their employer's headquarters, Hawkeye Electronic Security Limited, rejecting a proposed 5% wage increase as “unacceptable.” Backed by the Union of Clerical, Administrative, and Supervisory Employees (UCASE), the guards argued that ongoing negotiations, spanning over a year and 14 meetings, have failed to produce a reasonable offer, despite rising economic pressures. UCASE General Secretary John Levy highlighted that the guards, trained in diplomatic security, play a crucial role in safeguarding the High Commission and its personnel and deserve fair compensation. Levy criticised the disparity between UK minimum wage standards and what the Jamaican guards are paid. “The minimum wage, the last time I checked, was something like £7 per hour in England, and what they are offering the Jamaican worker maybe amounts to somewhere around £1 or £2. I’m not exactly sure, maybe about £2, so it’s very unreasonable, and I know the British High Commission is not an organisation that treats people unfairly. The history will show that when it comes to workers, that is where a lot of the workers’ rights emanate and we are expecting that the company will have some conversation with whoever engaged them and to come back to the table with an offer in the spirit of free collective bargaining and make an offer to the workers,” he said. He urged Hawkeye to re-engage with the British High Commission to reach a more equitable agreement in the spirit of free collective bargaining.

Vanuatu's Speaker of Parliament, Seoule Simeon, is set to appear in the Supreme Court on 19 November for a plea hearing concerning theft allegations linked to a government vehicle. The Magistrate Court has expressed satisfaction with the prosecution's investigation, thus committing the case onward to the Supreme Court. Simeon faces accusations of unlawfully diverting a government vehicle to Epi, an act deemed theft per the Penal Code. Notably, key witness Stanley John Fred has requested indemnity, suggesting he may provide vital testimony against Simeon, as reported by Post Courier . The allegations date back to the period between 2018 and 2020, and the outcome of the upcoming plea hearing is expected to significantly influence future legal proceedings in this matter.

Economic crisis

Vanuatu is grappling with a burgeoning economic crisis, as underscored by various recent analyses showing dramatic falls in essential economic metrics. Specifically, Value Added Tax (VAT) revenues have declined by 25% year-on-year, following the liquidation of Air Vanuatu. Additionally, government revenue recorded a shortfall of 23% from January to June, compounded by worries over diminishing funds from the Citizenship By Investment programme. According to The National , the World Bank’s forecasts indicate that the economy is approximately 3% smaller than it was in 2019, with per capita GDP plummeting to levels not seen in the last two decades. Looking ahead, projections remain bleak, with the International Monetary Fund (IMF) estimating only 2% annual economic growth until 2044, a rate insufficient to elevate living standards in light of population growth and imminent climate challenges.

Labour policy

In response to widespread issues faced by seasonal workers, including family disruptions, labour exploitation, and brain drain, the Vanuatu Government has unveiled its revised Labour Mobility Policy for 2024-2027. This policy is constructed upon five strategic pillars: 1. Legislative and Institutional Reform aimed at enhancing worker protection; 2. Improved data collection and coordination for insightful decision-making; 3. Strategies to support labour mobility management and facilitate returning workers' reintegration; 4. Child-centric social protection systems for families impacted by mobility; and 5. Enhanced worker welfare and benefits. As reported by Post Courier , Deputy Prime Minister Matai Seremaiah has stressed the necessity of building an environment conducive for returning workers to invest their skills locally, signifying the relevance of a Reintegration Strategy to foster sustainable economic growth.

Tourism boom

Vanuatu, an idyllic archipelago in the South Pacific, is undergoing a boom in its travel sector, spurred by a visa-free policy allowing entry for travellers from 117 nations, including significant markets like Australia, China, the UAE, the UK, and the US. This initiative simplifies access to the nation’s magnificent natural landscapes and rich cultural heritage. In 2022, Vanuatu welcomed nearly 39,000 visitors, contributing over $105 million to its tourism revenue. The country’s economy is heavily predicated on tourism, in addition to agriculture, fishing, and offshore financial services, Travel and Tour World reports. With crucial airports such as Bauerfield International and Santo International, Vanuatu maintains robust connections to regional destinations. Tourist attractions are plentiful, including the stunning Nanda Blue Hole, Champagne Beach, and the active Mount Yasur volcano.

2031 pacific games

In a stark warning, Antoine Boudier, President of Vanuatu's National Olympic Committee and Chair of the Vanuatu Chamber of Commerce, cautioned that the prospect of hosting the 2031 Pacific Games could lead Vanuatu into financial distress. He has advised the government to retract its bid in light of the nation’s precarious economic situation. Government officials took a month to deliberate on his strong caution, but ultimately, Boudier announced the withdrawal from the bid on the day of the vote in Palau, reports ABC .

The International Monetary Fund (IMF) has declared Uganda's debt to be sustainable, highlighting a stable political and economic context, The Monitor reports. Despite challenges like high public debt interest rates and low private credit, ongoing fiscal consolidation positions Uganda favourably for development. Inflation, which peaked in 2022/2023, has been effectively brought down, supported by the Bank of Uganda's tight monetary policy. The financial sector remains stable but has concerns regarding the sovereign-bank relationship. The IMF's Article Four consultation noted that Uganda's public debt ratio is just above 50% of GDP, and it emphasized the need for sound macroeconomic management and improved tax administration. Uganda is under the leadership of President Museveni, who has held power since 1986, with elections scheduled for January 2026.

  Visa-free travel

Uganda and Mozambique are in negotiations to establish visa-free travel for their citizens as part of efforts to enhance regional integration under the African Continental Free Trade Area (AfCFTA). Mozambique has proposed allowing Ugandans to enter without a visa, especially for holders of diplomatic, official, and honorary passports. If approved, this would eliminate the current visa fee of $50 for Mozambicans traveling to Uganda. According to News Central , the agreement aims to strengthen bilateral relations and boost trade, and discussions also involve political, security, and economic collaborations.

Deaths from road accidents

In Uganda, 239 schoolchildren aged 5 to 18 have been killed in road accidents within the past nine months, according to police. The fatalities occurred primarily during school drop-offs and pickups as the new school term began. Authorities emphasised the shared responsibility of parents, teachers, and motorists for ensuring children's safety on the roads, Pune reports. With around 20,000 annual road accidents resulting in over 2,000 deaths nationwide, officials urge increased vigilance, especially when transporting young children on motorcycles.

Citizens urged to participate in budget processes

Uganda's Speaker of Parliament, Anita Among has emphasised the importance of increased citizen participation in budget processes during the 7th Annual African Network of Parliamentary Budget Offices (An-PBO) Conference. She highlighted that citizen involvement enhances transparency and accountability in governance and budgeting, citing Zimbabwe's pre-budget conferences as a model. According to Zaywa , Among called for better financial and technical support for parliamentary budget offices to improve their effectiveness. The conference is a platform for knowledge sharing and collaboration among African parliamentary budget offices, focusing on enhancing fiscal oversight and public finance management. Among was also named patron of the An-PBO.

Uganda launches airline

Uganda Airlines has launched direct flights between Entebbe International Airport and Abuja's Nnamdi Azikiwe International Airport, with the inaugural flight landing on September 12, 2024. African Tourism and Travel Association reports that the new route, operating twice weekly on Thursdays and Sundays, is aimed at enhancing economic and social ties between Uganda and Nigeria, becoming Uganda Airlines' 14th destination. The launch coincided with the 4th Nigeria-Uganda Trade and Business Forum, where stakeholders explored trade opportunities. Ugandan officials emphasized the route's potential to boost trade, tourism, and investment while reducing travel time and costs for business travellers, aligning with Uganda's goal of improving intra-African trade.

"President of the UAE His Highness Sheikh Mohamed bin Zayed Al Nahyan assured (Pakistan of) the UAE's support in all circumstances and made the commitment of investing US $10 billion in multiple sectors," a statement from Pakistan's Prime Minister's Office said.

Sharif arrived in Abu Dhabi on Thursday, May 23. This visit marks the first time since his election this year. The visit is also a part of the country's efforts to ramp up foreign investments to bolster the economy which has suffered high inflation rates.

Meanwhile, after successfully concluding a short-term $3 billion IMF bailout programme last month, Pakistan has extended yet another warm welcome to an IMF team for discussions on the nation's budget and economic recovery strategies.

According to Reuters , IMF shared that its team led by mission chief Nathan Porter concluded discussions with Pakistani authorities after he visited the country on Thursday, May 23, 2024.

"The mission and the authorities will continue policy discussions virtually over the coming days aiming to finalise discussions, including the financial support needed to underpin the authorities' reform efforts from the IMF and Pakistan's bilateral and multilateral partners," Porter said .

Additionally, Pakistan is anticipated to request a minimum of $6 billion through the new programme and seek additional financing from the IMF under the Resilience and Sustainability Trust.

What they said

IMF mission chief for Nigeria Axel Schimmelpfenning said "If Nigeria grows at 3.3% that is just above the population dynamics, which is a big challenge." "The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards. We think a lot has happened. We also have to recognise that the problems built up over many years were quite severe. We can't expect that everything is going to be resolved overnight," he was quoted by Business Insider Africa as saying.

From its assessment of 125 countries, low-income countries as classified by the World Bank are likely to be more impacted by AI with inadequate policies to support its integration in areas including digital infrastructure, human capital and labour market policies, innovation, and economic integration, and regulation and ethics.

“The human-capital and labor-market policies component, for example, evaluates elements such as years of schooling and job-market mobility, as well as the proportion of the population covered by social safety nets. The regulation and ethics component assesses the adaptability to digital business models of a country’s legal framework and the presence of strong governance for effective enforcement,” the IMF in its report said.

On the other hand, findings revealed that wealthier countries and advanced economies are better equipped for AI adoption.

The United States, Singapore, and Denmark were among the highest-scoring countries on the index.

The Index also noted that about 40% of global employment is exposed to Artificial Intelligence.  While there’s a likelihood of some jobs being complemented by AI, others will be completely taken over by AI.

The IMF therefore highlighted the need for countries to develop a strong foundation through investments in digital infrastructure and a digitally competent workforce while establishing robust regulatory frameworks.

Semanario Universidad reports that San José is the city that experienced the highest cost of living increase for international employees in the past year, according to the 2023 Cost of Living ranking made by Mercer, an international consulting firm. While Costa Rica’s capital is not the most expensive city overall, it rose 76 places in the ranking, and now sits in the 63rd position out of 277 cities. In Latin America, only Nassau, San Juan, Buenos Aires and Montevideo are more expensive, according to Mercer, while in Central America, San José is the most expensive city for expats. 

IMF disburses $523 million to Costa Rica

The International Monetary Fund (IMF) has approved two disbursements for Costa Rica totalling $523 million, according to Semanario Universidad . A review under the Extended Fund Facility (EFF) led to a disbursement of $276 million. Simultaneously, the Executive Board completed a review of the agreement under the Stand-By Arrangement for Resilience and Sustainability (SRS), designed to advance a climate change agenda, which enabled a disbursement of $247 million. The IMF advised the country to maintain the current fiscal restraint in 2024. They also recommended approving reforms in income and value-added tax laws that would enhance the efficiency and equity of the tax system.

Minimum wage will increase in 2024

Starting January 1st, a 1.83% increase in the minimum wages for the private sector will come into effect in Costa Rica, Delfino.cr reports. This increment, approved on October 30th by the National Salary Council, is mandatory for all private sector minimum wages. The Ministry of Labor and Social Security stated that employers paying the minimum wage must apply this adjustment, but those who pay above the minimum are not obligated to do so. By mid-2023, Costa Rica’s US$650 minimum wage was the highest in Latin America, followed by Chile’s and Uruguay’s US$550.

Health Ministry fails to pay salaries in December

Costa Rica’s Health Ministry failed to pay salaries to more than 800 of its employees due to an administrative mistake, says La Nación . The Vice President and Minister of Health, Mary Munive Angermüller, acknowledged this issue and expressed her solidarity with the affected individuals. She emphasized the importance of timely income for their families' well-being and criticized the negligent action that led to the delayed salary payment. Munive Angermüller said she was committed to ensuring that the missing payments are made in the first half of January 2024. The minister also announced the initiation of an administrative investigation into the matter. The country’s National Medical Union has filed a complaint with the Ministry of Labor.

Government fell short on its job creation promise

Semanario Universidad reports that in 2023, the government experienced a setback in its job creation promise. Instead of advancing towards its initial annual target of around 50,000 jobs, it regressed. To fulfil President Rodrigo Chaves’ commitment of creating 205,000 jobs by 2026, as outlined in the National Development Plan presented in December 2022, the government must now double its initial annual objectives, aiming for over 100,000 jobs per year for the next three years. According to the National Institute of Statistics and Census (INEC), from the government's announcement in December 2022 to the latest October 2023 data, there was a reduction of 110,000 jobs, resulting in 2,062,436 employed individuals.

Among these were sixteen (16) African countries and one (1) South American country that have been taking massive loans from the Chinese government for several years after their respective programmes under the International Monetary Fund (IMF) and World Bank’s Highly Indebted Poor Countries initiative in 1996.

The HIPC initiative was a debt relief programme introduced to assist countries owing unmanageable debt burdens to clear their debts.

In 2005, to accelerate progress toward the  United Nations’ Sustainable Development Goals , the HIPC Initiative was supplemented by the Multilateral Debt Relief Initiative which gave countries completing the HIPC process 100 percent relief on eligible debts by the IMF, the  World Bank , and the  African Development Fund . 

In its latest annual report (2023), the U.S.-China Economic and Security Review Commission listed Ghana, Guinea, Ethiopia, Tanzania and the Democratic Republic of Congo as the top five (5) borrowers from China with $31.1 bn, $21.9 bn, $14.8 bn, $12.6 bn and $12.1 bn respectively.

The rest among the top seventeen (17) were the Republic of Congo, Mozambique, Sudan, Zambia, Bolivia, Chat, Senegal, Niger, Mali, Cameroon, Mauritania, and Sierra Leone.

The report noted that the Chinese government continues to free-ride on international efforts to alleviate distressed countries’ financial burdens by continuously lending to developing countries.

While the U.S. and other international donors including the IMF continue to assist highly indebted countries by exercising debt forgiveness, Chinese lenders continue to increase loans to the country with higher and adjustable interest rates on loans which intend to exceed rates provided by Western governments and multilateral institutions.

“China has an established pattern of lending to Heavily Indebted Poor Countries (HIPC) participants following their initial participation, with the majority of Chinese loans to Comoros, the Republic of the Congo, Côte d’Ivoire, Guinea, Liberia, and Togo occurring after these countries completed the program in the early 2010s. With the notable exception of Côte d’Ivoire, all of these countries have publicly supported China’s conduct in the South China Sea and most have supported China’s policies in Hong Kong and Xinjiang. In addition, China typically does not disclose the terms of its loans, which makes it difficult for developing borrowers to directly compare interest rates across lenders,” parts of the statement indicated.

The U.S.-China Economic and Security Review Commission was created by the United States Congress in October 2000 with the legislative mandate to monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.

The U.S.-China Economic and Security Review Commission released its 2023 Annual Report to Congress in November.

The East African country which was to end its programme under the International Monetary Fund (IMF) and the World Bank’s Highly Indebted Poor Countries programme on December 13, 2023 is expected to get debt relief from the international lenders.

This leaves Somalia’s external debt at six (6) percent of GDP from the sixty-four (64) percent in 2018.

The relief was made by commercial creditors ($3 billion), followed by multilateral creditors ($573.1 million), World Bank’s International Development Association ($448.5 million), IMF ($343.2 million) and African Development Fund ($131 million), according to The East African .

The announcement will be made in Washington DC on December 13 after the approval process is completed by the Bretton Woods institution.

This makes Somalia the 37 th country to reach the HIPC completion point.

The HIPC initiative was created by the IMF and World Bank in 1996 to assist poor countries owing unmanageable debt burdens to clear their debts and reduce economic constraints.

Former Gabonese President Ali Bongo, placed under house arrest following a military coup in August, has refused to go into exile, emphasizing his commitment to staying close to his detained family. Bongo who remains in good health has been deprived of financial freedom and other related reources, GaboNews reports. “The soldiers say that they directed, usurped his signature, but no decision was taken without the approval of Ali who was in full possession of his means despite his physical handicap. He affirms that they did nothing and that he is ready to take his responsibilities,” a close friend of the former president told the media. Bongo demands the release of his family who have been detained in Libreville central prison and to answer for his actions in their place. The former president has since refused an offer from the transitional government to go into exile.

IMF to scrutinise economic situation

Gabon's economic situation will be under scrutiny in January 2024 as the International Monetary Fund (IMF) plans its next mission to the country. Contrary to reports of the suspension of the 3rd review due to payment arrears and a lack of commitment to reforms, the IMF's Resident Representative, Agou Gomez, highlighted the need for a precise assessment of Gabon's economic and financial situation, Gabon Actu reported. “The main thing today is to make a precise assessment of the situation of the country economically and financially…Today the priority of the IMF and Gabon is to provide a precise overview of the economic, social and political situation of the country,” said Agou. The delay in the review is attributed to the electoral period in 2022.

Japanese support for education infrastructure

Gabon has received a grant of 47 million FCFA ( $ 78, 000) from Japan for the construction of the Alenakiri public school. The Ambassador of Japan to Gabon, Shuji Noguchi, expressed the Japanese Government's commitment to supporting initiatives aimed at improving access to quality education, Gabon Media Time has reported. “I would like to reaffirm the commitment of the Japanese Government to support the initiatives of the Transitional Government aimed at improving access to quality education for the well-being of the Gabonese people,” said Noguchi. The funds will contribute to enhancing learning conditions for children in Alenakiri.

Transitional government unfreezes recruitment

The transitional government has issued a decree lifting the freeze on recruitment, examinations, tenure, advancement, internships, and reclassifications in the Civil Service. The decision aims to address unemployment concerns, particularly among the youth, GaboNews reports. “ Recruitment, examinations and competitions, tenure, advancement, internships and reclassifications are reopened in accordance with the legislative and regulatory texts in force.” Gabon, with one of the highest youth unemployment rates in sub-Saharan Africa, looks to open opportunities and reduce joblessness through this policy change.

Gabon makes representation at COP28

The transitional president of Gabon, General Brice Oligui Nguema has made bold statements on behalf of his people at the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) regarding the fight against climate change. In his address on December 1, Nguema underscored Gabon's pivotal role in the global fight against climate change, Gabon Review reports. "Let me speak about Gabon, a country that constitutes 11% of the Congo Basin, boasts an 88% forest cover, and holds a vital position in global climate action…preserving this extensive lung of the planet comes at a cost for Gabon and its people. My people aspire to continue safeguarding their biodiverse forests. But what do they receive in return? Certificates of good conduct? Unfortunately, certificates don't feed them!...It, therefore, appears imperative to me to acknowledge and reward the crucial role played by Gabon's forests in preserving biodiversity, sequestering CO2, and safeguarding ecosystems," General Brice Oligui Nguema told the international community.

This latest disbursement of SDR 15.555 million brings the total disbursements under the arrangement to SDR 124.44 million, approximately US$165.6 million.

Finance Minister Sheku A.F. Bangura, while reaffirming the government’s vision of transforming the economic situation in the country through the implementation of crucial fiscal reforms and prudent debt management, said that the IMF move would complement the efforts of Bank of Sierra Leone in adopting a proactive monetary policy stance .

This, according to him, will positively impact the economic indicators including inflation and exchange rates in the country.

“The combination of these policies will promote macroeconomic and financial stability and lay the foundation for inclusive green and sustainable growth as we look forward to further engagements with the Fund on the successor program,” Minister Bangura was quoted by Awoko Newspaper .

The government of Sierra Leone aims to address macroeconomic issues the country is currently facing through such moves.

Sierra Leone’s ECF program aimed at reducing inflation among other financial repairs, was initially approved on November 30, 2018, for SDR 124.44 million (about US$172.1 million at that time), covering a period of 43 months.

With the successful completion of the eighth, Finance Minister Bangura announced the commencement of discussions on a successor programme with the IMF in 2024 .

Meanwhile, the IMF Board has stressed the need for continued efforts toward restoring the country's macroeconomic stability.

What they said

Discussions on the performance and policies underpinning the third review of the program under the ECF arrangement in Mozambique “were fruitful and will continue in the coming weeks aiming to reach Staff Level Agreement,” the IMF said, as quoted by The East African . Team Leader, Laura Jaramillo also expressed optimism about Somalia’s prospects saying, “Somalia has maintained strong implementation of wide-ranging reforms to help strengthen key economic and financial policy institutions.”  For Tanzania which has a staff-level agreement arrangement with the IMF on the second review of the extended credit facility, Charalambos Tsangarides, who led the IMF team said, “Upon completion of the Executive Board review, Tanzania will have access to SDR113.37 million ($150 million), bringing the total IMF financial support under the arrangement to SDR342.1 million ($452.7 million)”.