'Dreams of Africa’s next generation need right environment to be realized' – IMF Chief

19 Décembre 2017

Addis Ababa, Ethiopia, December 19 (Infosplusgabon) -  Governments can create a foundation for innovation by streamlining regulations "so that everyone plays by the same rules and entrepreneurs are rewarded for their ingenuity," the Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has said.

“When I travel in Africa, I never worry that the dreams of the next generation are not big enough. The only question is whether we can create an environment where those dreams will have the chance to be realized,” Ms. Lagarde told representatives of the private sector, academia, university students, UN staff and the diplomatic corps gathered at the UN Economic Commission for Africa in Addis Ababa, Ethiopia, on Tuesday,  .

The IMF chief, whose remarks centred on ‘The Foundations of Technological Transformation in Africa’, noted that by 2030, over half of new workers entering the global labour force will come from Africa, where the youth currently comprise 75 percent of the working age population.

“With the right strategy, this incredible surge could translate into a virtuous cycle of economic growth and development,” she said.

Ms. Lagarde, however, cautioned that hundreds of millions of people will need better health care, more educational opportunities, and jobs - many in career paths that have not yet been invented.

Expressing concern over uneven growth and a slowdown in some countries due to lower commodity prices, she lamented that on a GDP per capita basis, 15 countries on the continent are expected to see a decline this year.

The IMF chief advised that achieving growth that is stronger, lasting and more inclusive – one that leads to benefits and higher living standards - would require diversification, the right balance between investment and debt sustainability and harnessing technology to accelerate economic and social development.

“Technology does not hold all the answers. In fact, technology often raises new questions, including about the impact of automation. But there is no doubt technology is an important part of the story,” she said.

Ms. Lagarde stressed that governments can do more than just encourage innovation, by leading the way themselves. Doing both - creating the right environment for technological innovation and leveraging digital tools leads to more transparency, stronger accountability and “delivery of a better life for every citizen,” she added.

FIN/INFOSPLUSGABON/IUY/ GABON 2017

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