and the United Kingdom for a regional IMF Technical Assistance Center

The International Monetary Fund (IMF) with donors and recipient countries on 11th December 2009 concluded a successful pledging session that raised US$130 million to finance two existing and two new African Regional Technical Assistance Centers (AFRITACs) in Ghana and Mauritius. The four AFRITACs will require funding of about US$200 million over five years.

“The AFRITACs assist countries in designing and implementing sound macroeconomic policy, which is key to their development and all the more important in light of the financial crisis. They provide a platform for donor coordination as called for in the Paris Declaration on Aid Effectiveness“ Mr. Portugal, IMF Deputy Managing Director said at the conclusion of the pledging conference.

Ghana was selected as the site for AFRITAC West II, which will serve six countries (Cape Verde, The Gambia, Ghana, Nigeria, Liberia, and Sierra Leone) and could provide technical assistance on tax and customs policy and administration, public financial management, financial sector regulation and supervision, public debt markets, and macroeconomic statistics.

The pledging session was co-hosted by the African Development Bank (AfDB) in Tunis and attended by representatives of Brazil, China, the European Commission, the European Investment Bank, France, Germany, Italy, Luxembourg, the Netherlands, Spain, Switzerland, and the United Kingdom; representatives of regional organizations, including ECOWAS, IOC, SADC, and WAEMU; and ministers and senior officials of the recipient countries: Cameroon, Ghana, Malawi, Mali, Mauritius and Tanzania. Firm pledges were received from the United Kingdom, Switzerland, France, the AfDB, the Netherlands, Germany, the European Investment Bank, Finland, Kuwait, Luxembourg, Italy and Brazil.

Switzerland, one of the largest donors to the IMF’s capacity building program and existing AFRITACs, has firmed up its pledge by signing an agreement with the IMF to contribute US$10 million; out of this, US$ 5 million will support the AFRITAC West II to be set-up in Ghana.

The UK has already formally approved funding for AFRITAC East (£11 million for 2009-2014) and announced plans at the event to support AFRITAC West II and South.

Several African regional organizations as well as the Africa-Caribbean-Pacific Group of Countries in conjunction with the European Commission have expressed their support to the Initiative and are exploring the possibility of substantial contributions. Discussions are also ongoing with other bilateral donors to close the remaining financing gap in the months ahead.