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Ivory Coast’s Ouattara becomes IMF executive board member

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Wautabouna Ouattara of Ivory Coast has been appointed as the third director for Sub-Saharan Africa on the executive board of the International Monetary Fund (IMF), which strengthens the region’s influence in policy-making by serving as the lender of last resort.

There are now 25 members of the executive board, which is in charge of the fund’s daily operations, thanks to the new role.

“The addition of a third African chair to our Board reflects the continent’s tremendous progress in developing its human and economic potential,” IMF Managing Director Kristalina Georgieva said in a statement on Friday.

After an election, an additional regional representative was formally appointed to the board, according to the IMF. It is its first expansion since 1992 when the Soviet bloc broke up and two postings were established for the former Soviet Union nations.

Despite having 18% of the world’s population, Africa’s 54 nations—the largest bloc in terms of number among the IMF’s 191 members—only have 6.5% of voting rights. About half of that comes from Sub-Saharan Africa’s vote portion.

A year ago, in Marrakech, Morocco, the new position for the area on the board was unveiled. However, detractors claim that, while the region struggles with debt, it does not adequately meet its requirements.

As nations like Zambia and Ghana restructured their loans and others, like Kenya, looked to the Fund for greater liquidity support because of rising debt interest obligations, the IMF has been playing an increasingly important role in the management of economies in Sub-Saharan Africa in recent years.

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Musings From Abroad

Brazil’s Embraer to invest in Morocco’s aerospace sector

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Morocco’s industry ministry has announced that Brazilian aircraft manufacturer, Embraer, has reached an initial agreement to invest in the country’s defence and civilian aerospace sectors, including the establishment of a maintenance and repair facility.

According to a Moroccan industry insider who asked to remain anonymous, Embraer’s prospects of obtaining a piece of a recent plane acquisition tender issued by Moroccan airline RAM are expected to increase with the new maintenance, repair, and overhaul (MRO) facility.

At the opening of the Marrakech Air Show, where the Embraer transaction was finalised, RAM CEO Abdelhamid Addou stated that the company intends to quadruple its fleet to 200 within the next 14 years to solidify its position as a carrier connecting Africa to Europe and the Americas.

Safran, a manufacturer of aircraft engines, and the Moroccan government inked an agreement Monday to construct an MRO plant valued at 130 million euros ($141.14 million).

To emulate its success in auto production, Morocco’s government has recently promoted aerospace suppliers to invest in the nation by establishing hubs to streamline supply chains and exchange knowledge.

With $2.2 billion in exports last year, the nation’s 147 aerospace industrial units produce everything from cables to sophisticated engine parts, supplying international giants like Boeing and Airbus.

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Musings From Abroad

Morocco, France seal reconciliation with commercial deals

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As the two nations end years of diplomatic hostilities, Morocco signed a number of economic agreements during French President Emmanuel Macron’s state visit to the country, including an agreement to purchase high-speed trains from the French company Alstom on Monday.

In the last three years, Paris and Rabat have had a tense relationship, particularly because of immigration concerns and the disputed Western Sahara region, which Morocco wants to be recognised as Moroccan by the international world.

Macron paved the way for the reunion in July by supporting Morocco’s stance on Western Sahara after treading carefully to avoid upsetting Morocco’s adversary Algeria. Macron is travelling with about 40 business executives and 12 ministers.

Before the contract signing event at the Moroccan royal palace on Monday, Macron and his wife Brigitte were greeted at the airport by King Mohammed VI, who was walking with a cane in an unusual honour for a foreign visitor.

As Morocco looks to extend an existing line farther south to Marrakech by 2030, Alstom of France and Morocco’s rail operator ONCF struck a deal to purchase 12 high-speed carriages and the option for an additional six.

French energy companies Engie and EDF also inked agreements to grow in the renewable energy space, and TotalEnergies inked a hydrogen agreement, though the exact sum was not immediately made public. Additionally, the shipping corporation CMA CGM revealed plans to invest in a port terminal in Morocco.

Although they did not provide a detailed breakdown, French officials stated that contracts for both parties totalled more than 10 billion euros ($10.8 billion).

Additionally, France hoped the visit would ease tensions surrounding immigration, a contentious subject in France where right-wing groups are pressuring the government to return more undesired migrants to nations like Morocco.

To put pressure on these nations to make it easier for those people to return, Paris decided in 2021 to substantially reduce the number of visas it gives to travellers from North Africa.

 

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