Equatorial Guinea needs to obtain $700 million in help from the International Monetary Fund (IMF) by January because the nation seeks to assist shore up central Africa’s general currency.
The Organization of Petroleum Exporting Countries’ (OPEC) smallest member will host an IMF mission later this month for talks on a manageable deal, the minister of economy, finance, and planning, Cesar Mba Abogo, stated in an interview on the World Economic Forum on Africa in Cape Town. The talks are a part of the lender’s reform applications with the six-member nations of the Central African Monetary and Economic Community – whose oil-dependent economies have been hammered by the downfall of prices since 2014.
Decrease crude costs hindered economic growth and led to exterior reserves dropping by nearly two-thirds over about two months three years of import cowl by the middle of 2017 as foreign inflows dwindled. It additionally raised fears that the Central Africa CFA franc, whose peg to the euro is assured by France, was vulnerable to devaluation.
Whereas member nations akin to Cameroon, Gabon and Chad already agreed to economic reforms as a part of monetary help packages with the IMF, Equatorial Guinea hasn’t yet finalized a deal. Regardless of its oil riches and boasting one of many highest charges of gross domestic product per capita in Africa, Equatorial Guinea has among the continent’s gravest social signs as his fifth decade in office President Teodoro Obiang Nguema Mbasogo.