The numerous elections taking place in Africa this year must make the authorities “vigilant” on their expenses, warns, in an interview with AFP, Catherine Pattillo, deputy director of the Africa department of the International Monetary Fund (IMF), especially as the continent is struggling to get out of the financial rut.
“In low-income countries, spending may be unbalanced during election years to build popular support”says Mme Pattillo on the occasion of the presentation of an IMF report devoted to sub-Saharan Africa. Gold “once the election is over, it may be necessary to make cuts, including in the public sector, which nevertheless provides growth”she continues.
From South Africa to Algeria, via Mozambique, Ghana and Mauritania, nearly 20 ballots are being held this year on the continent, recalled the institution, Friday April 19, on the occasion of the spring meetings of the IMF and the World Bank in Washington. Some elections have already taken place, such as in Senegal, where they were disrupted by unrest. “The delay in the Senegalese election has added uncertainty to the region”it is written in the IMF report.
Growth of 3.8%
“More generally, we observe that political instability around elections not only leads to macroeconomic costs, but triggers budgetary adjustments to the detriment of public investment”, also analyzes this regional report, which highlights the risks of sudden changes in public policies induced by the elections. Mme Pattillo calls on authorities to “be vigilant in the face of certain pressures and stay the course on the reform program”.
The IMF says it is all the more alert on the issue as the current period “is critical for fiscal adjustment, due to high levels of debt and the need to raise capital in order to finance development spending”, according to the deputy director. Growth in sub-Saharan Africa is expected to reach 3.8% this year, “which is a pace much lower than what we experienced before the pandemic”she notes, describing the economic recovery as “lukewarm and expensive”.
“Financing is very difficult and expensive, and many States are facing significant debt repayment deadlines”, she says. Faced with rising interest rates over the past two years by central banks across the planet, African states are having to pay more to finance their loans. Development aid to Africa also increased by 2% last year, according to statistics from the Organization for Economic Co-operation and Development (OECD) published in mid-April, but it had slowed down by 11% one year. previously.