East African Business Week

DAR ES SALAAM, TANZANIA - The African Development Bank has committed US$7.5million to support the International Monetary Fund (IMF) Capacity Building in Africa.
The signing was took place last week between AfDB and the IMF to support latter's capacity building in Africa through the third phase of the Africa Regional Technical Assistance Centers (AFRITACs) Initiative.
"The IMF's regional centers are widely considered as models for effective capacity building in Africa, and we are delighted to take our cooperation with the African Development Bank to a new level," Ms Nemat Shafik, Deputy Managing Director of the IMF, said after signing the agreement at a ceremony in Washington D.C. during the IMF's Annual Meetings.
An IMF 'Review Magazine' made available to The East African Business Week said: "The AfDB has been a strategic partner and lead donor since the inception of the AFRITAC Initiative in 2002 and has become a pivotal partner in its implementation.
 "The AfDB's renewed and increased contribution marks a new stage in the AfDB's support to AFRITACs and facilitates the expansion of the initiative. We are grateful for the AfDB's continued support and look forward to further strengthening our cooperation," Ms Shafik.
The AFRITACs assist recipient countries in their efforts to strengthen financial governance and build effective institutions. It provides assistance to strengthening of public finances and reducing poverty, debt and revenue management, and tax reforms.
It also supports regional integration and provides a platform for donor coordination. The AfDB contributed a total of US$6 million to three AFRITACs between 2002 and 2009. This included $3 million for the first phase (2002-05) - which established two pilot Centers in East and West Africa, and $3 million to cover the second phase (2006-09). AFRITAC East was opened in Dar es Salaam, in 2002, and serves seven countries in Eastern Africa.
 "The global economic and financial crisis as well as continued vulnerabilities of African countries make the policy advice and technical assistance provided through the AFRITACs even more relevant today," said Mr. Aloysius Uche Ordu, Vice President, Country and Regional Programs of the AfDB, after signing the agreement.
With that contribution, the AfDB sets the stage for enhanced support to Africa's efforts to improve macro-economic and financial management and governance through the provision of well targeted technical assistance.