This is as policy makers in both the fiscal and the monetary agencies have been charged to work together to ensure stable growth and price stability in
On his part, Director, Fiscal Affairs Department at the IMF, Vitor Gaspar, noted that 19 of the 35 low income countries in Africa are in debt distress as more than 120 million people on the continent do not have enough food to eat.
“Some estimates indicated more than 120 million people in Africa alone are suffering from food insecurity. They don’t have enough to eat. So this is a very, very serious situation. Governments are facing double digit inflation, many countries are facing very high debt. Many countries are facing debts similar to the early 2000s when they had debt relief.
“One is obviously to the resources and the most urgent needs. That is the food crisis. This is has to be done, together with the international community. Secondly, Africa already before the pandemic as a very low level, tax ratio to GDP. These levels have deteriorated so when you look now, compared to the pre pandemic trends, we have seen a natural decline in tax ratios.
“Improving the quality of spending and reducing waste is important areas but more importantly, the need for improved social safety net, which help governments target better those in need while reducing inefficient and wasteful spending.